Which of the following best defines standard costing? a. It is the same as actual costing but done in real time. b. It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used. c. It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced. d. It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.
Which of the following best defines standard costing? a. It is the same as actual costing but done in real time. b. It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used. c. It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced. d. It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.
Which of the following best defines standard costing? a. It is the same as actual costing but done in real time. b. It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used. c. It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced. d. It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.
Which of the following best defines standard costing?
a.
It is the same as actual costing but done in real time.
b.
It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used.
c.
It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced.
d.
It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.
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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