Standard costs are NOT used for:a. determining actual costs.b. preparing budgets and forecasts.c. evaluating the performance of workers and management.d. developing appropriate selling prices.

Step 1: Definition of Standard CostsStandard costs are predetermined estimates of what costs should…

Answered: Standard costs are NOT used for: a.…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 4CDQ

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Similar questions

Although the cost-plus approach to product pricing may be used by management as a general guideline, what are some examples of other factors that managers should also consider in setting product prices?
Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.
Why would management be concerned about the accuracy of product costs?
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
Accounting systems that use standards for product costs are called budgeted cost systems. True False
Absorption costing is:A. a good way to value inventories for the balance sheet.B. used for external reporting purposes.C. less useful than variable costing for management decision making. D. A and B is correct E. A, B and C is correct
Describe the concept of management by exception and explain how standard costs help managers apply this concept to control costs.
← Responsibility reports are used for O A. costs that the segment manager cannot control OB. looking at just actual revenues that have incurred OC. looking at just actual costs that have incurred OD. performance evaluations
When making decisions, managers should consider a. revenues that differ between alternatives. b. costs that do not differ between alternatives. c. only variable costs. d. sunk costs in their decisions.
Which of the following statements is false? Cost allocations such as activity-based costing allow manager to evaluate profitability of their products. A budget is a quantitative plan for acquiring and using financial and other resources over a specific forthcoming time period. A detailed activity-based costing system is costly to implement. Using different allocation base does not affect manufacturing overhead costs allocated to each product.
General Account
Which of the following statements is true? (You may select more than one answer.)a. A common cost is one type of direct cost.b. A sunk cost is usually a differential cost.c. Opportunity costs are not usually recorded in the accounts of an organization.d. A particular cost may be direct or indirect depending on the cost object.

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Standard costs are NOT used for: a. determining actual costs. b. preparing budgets and forecasts. c. evaluating the performance of workers and management. d. developing appropriate selling prices.