WHICH OF THE FOLLOWING STATEMENTS IS FALSE?A. A STANDARD IS A UNIT AMOUNT.B. THE STANDARD COST OF A PRODUCT IS EQUIVALENT TO THE BUDGETEDCOST PER UNIT OF PRODUCT.C. A STANDARD COST IS MORE ACCURATE THAN A BUDGETED COST.D. IN CONCEPT, STANDARDS, AND BUDGETS ARE ESSENTIALLY THE SAME.

Step 1: Definition of Standard CostStandard cost refers to a predetermined or estimated cost of…

Answered: WHICH OF THE FOLLOWING STATEMENTS IS…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 18Q: Why is it important to distinguish between variable costs and fixed costs for budgeting purposes?

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Similar questions

S1: A budgeted cost for one unit of product may not always be the standard cost of said product. S2: Standard cost maybe described as benchmarks used to evaluate performance. a)both are true b)both are false c)S1 is true d)S2 is true
Two standards that are established for evaluating budget performance are the cost standard and the efficiency standard. Explain the difference between the two standards and give an example of each. Why is it important to measure the actual results against both standards?
Variance means the difference between: a. actual costs and price paid. b. actual costs and opportunity costs. c. actual costs and past costs. d. actual costs and estimated costs.
Why is it important to distinguish between variable costs and fixed costs for budgeting purposes?
When is the material quantity unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
Which of the following statements is (are) true? (A) A price standard is the price that should be paid per the unit of output. (B) A quantity standard is the amount of input that should go into a single unit of the output
This term is synonymous with the phrase "what a product should cost"? A. Standard cost B. Variable cost C. Correcting the variances D. Actual cost
1. Match each of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between 1. Cost Variance total overhead cost that would have been expected if the actual operating 2. Volume Variance volume had been accurately predicted and 3. Price Variance the amount of overhead cost that was allocated to products using the predetermined standard overhead rate. 4. Quantity Variance 5. Standard Costs A planning budget based on a single predicted amount 6. Fixed Budget of sales or production volume; unsuitable for 7. Flexible Budget…
Which of the following best describes standard costs? A) Costs used as a budget for a single unit of product B) Costs incurred to produce a product C) Costs based on the average of current market values D) Costs used to compare with competitors' prices
Which of the following is true? a) The direct materials purchases budget is determined from the direct labour budget. b) The only budget providing input into the revenue budget is the sales budget c) The direct materials purchases budget and the capital expenditures budget are both determined from the production budget. d) The selling and administrative expense budget is input into the forecasted cost of goods sold.
Cost accounting
A budget for a single unit of a product or service is called a. fixed cost b. real cost c. total cost d. standard cost

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WHICH OF THE FOLLOWING STATEMENTS IS FALSE? A. A STANDARD IS A UNIT AMOUNT. B. THE STANDARD COST OF A PRODUCT IS EQUIVALENT TO THE BUDGETED COST PER UNIT OF PRODUCT. C. A STANDARD COST IS MORE ACCURATE THAN A BUDGETED COST. D. IN CONCEPT, STANDARDS, AND BUDGETS ARE ESSENTIALLY THE SAME.