In service production businesses, production overheads are usually charged to services as an estimate.   ii. Production expenses in service production enterprises are followed in the accounts of 710. Direct Raw Material and Material Expenditures, 720. Direct Labor Expenses and 730. General Production Expenses. iii. Accounts 711, 721 and 731 are used in reflecting the production expenses to the sold service costs in service production enterprises.   Which of the following is true regarding the application of the order cost method in service production companies?      a) only ii  B) i and iii  NS) only i  D) ii and iii  TO) i and ii

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.