Answered: Question A price variance in standard…

Question A price variance in standard costing occurs due to: A) Efficiency differences B) Mix changes C) Volume changes D) Actual price differing from standard

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 11DQ: How does absorption costing differ from variable costing? When will absorption-costing operating...

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4 PTS

Question
A price variance in standard costing occurs due to:
A) Efficiency differences
B) Mix changes
C) Volume changes
D) Actual price differing from standard

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Similar questions

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Tutor give answer
*Question:** Which method is commonly used in accounting to compare actual costs with standard costs and analyze variances? a) Activity - based costing b) Absorption costing c) Standard costing d) Marginal costing
1. Explain why the variances used to reconcile profit in a standard costing system are different from those used in a standard absorption costing system. 2. Explain the arguments for the use of traditional absorption costing rather than marginal costing for profit reporting and inventory valuation.
When would a variance be labeled as favorable? (a) When standard costs are less than actual costs (b) When estimated costs are greater than actual costs (c) When actual costs are less than standard costs (d) When standard costs are equal to actual costs.
Variable costing is sometimes called a. differential b. direct c. profitability d. absorption costing.
Cost Account
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