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Which of the following statements is true of standard cost

Which of the following statements is true of standard cost?

A.It is equal to the actual cost of one unit of product.

B.It is the amount management thinks that one unit of product should cost.

C.It allows companies to generate more favorable than unfavorable variances.

D.It is often calculated after production for the period is complete.

 

33.What are standard cost variances?

A.Differences between standard and actual costs

B.Amounts that exceed budgeted amounts

C.Useful industry-developed amounts that can be used by companies to evaluate their performance

D.Differences between budgeted and standard amounts

 

34.The difference between standard and actual costs is

A.considered to be an ideal standard.

B.a variance by exception.

C.the budgeted cost of one item of product.

D.a standard cost variance.

 

35.What is the cost that management believes should be incurred to produce a product under anticipated conditions called?

A.Budgeted cost

B.Ideal cost

C.Actual cost

D.Standard cost

 

36.In what industries are standard costs used?

A.Manufacturing companies only

B.Service companies only

C.Both manufacturing and service companies

D.None of these answer options are correct.

 

37.For which one of the following will standard costs be most useful?

A.A soft drink bottling company

B.A caterer

C.A cabinet manufacturer

D.An event planner

 

38.What is a standard cost?

A.The difference between an attainable standard and an ideal standard

B.The budgeted cost of the total number of budgeted units

C.The budgeted cost of a single unit

D.None of these answer choices are correct.

 

39.Which one of the following is true concerning standard and budgeted costs?

A.Standard cost times the expected production level equals the budgeted cost.

B.Standard cost times the predetermined overhead rate equals the budgeted cost.

C.Total budgeted cost divided by actual units equals the standard cost.

D.None of these answer choices are correct.

 

40.

A.refers to a single unit while budgeted costs refer to the cost, at standard, for the total number of budgeted units.

B.is calculated under ideal conditions, while budgeted costs are calculated for attainable conditions.

C.is calculated for raw material while budgeted costs are calculated for direct labor.

D.is part of the management accounting system, while budgets are part of the financial accounting system.

 

41.For which one of the following are standard production costs not developed?

A.Direct materials

B.Commission per unit

C.Manufacturing overhead

D.Fixed costs

Jan 24 2020 View more View Less

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