T, F. In order to avoid the transfer of inefficiencies of service departments to operating departments, service departments should charge operating departments standards cost rather than actual costs. T, F. Standard is a bench mark for performance measurement and reward. T, F. Price Variances in materials costs are the differences between standard and actual costs due to fluctuations in the price paid for raw materials. T, F. Quantity variance in material costs are the differences between standard and actual costs due to fluctuations in the quantities of materials budgeted. T. F. Labor rate variances are the differences between standard and actual costs due to fluctuations in wage rates. T, F. Efficiency variances in labor costs are the differences between standard and actual costs due to fluctuations in the number of labor hours required to complete a product or job.

Name: T, F. In order to avoid the transfer of inefficiencies of service depa
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Description: T, F. In order to avoid the transfer of inefficiencies of service departments to operating departments, service departments should charge operating departments standards cost rather than actual costs. T, F. Standard is a bench mark for performance me

Standard Cost: It is the estimated cost of the manufacturing process or a product that is generally…

Answered: T, F. In order to avoid the transfer of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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T, F. In order to avoid the transfer of inefficiencies of service departments to operating departments, service departments should charge operating departments standards cost rather than actual costs.
T, F. Standard is a bench mark for performance measurement and reward.
T, F. Price Variances in materials costs are the differences between standard and actual costs due to fluctuations in the price paid for raw materials.
T, F. Quantity variance in material costs are the differences between standard and actual costs due to fluctuations in the quantities of materials budgeted.
T. F. Labor rate variances are the differences between standard and actual costs due to fluctuations in wage rates.
T, F. Efficiency variances in labor costs are the differences between standard and actual costs due to fluctuations in the number of labor hours required to complete a product or job.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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