Which one of the following is not an advantage of a standard costing system? a. It can be used as the price at which to sell a product. b. It allows for a comparison of differences between actual and standard costs. c. It is useful in highlighting variances for management by exception. d. It provides a quick basis for determining the actual cost of a product.

Which one of the following is not an advantage of a standard costing system? a. It can be used as the price at which to sell a product. b. It allows for a comparison of differences between actual and standard costs. c. It is useful in highlighting variances for management by exception. d. It provides a quick basis for determining the actual cost of a product.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13Q: What advantage does the FIFO cost method have over the average cost method relative to providing...

See similar textbooks

Similar questions

Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.
Hi. General Account. Tutor. help
Which of the following statement is true under the Standared Costing System a. Standard cost is a predetermined or estimated cost to either produce a good/service or perform an activity within the organisation b. Standard cost is a control technique that helps to report variances by comparing pre-set standards to actual costs to facilitate action c. Both a and b are incorrect d. Both a and b are correct
*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
Cost accounting
When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.
Which of the following is not a true statement about variable costs? a. Total cost is known to change in proportion to any changes in related level of volume or activity. O b. When considering total cost behaviour, focus on fixed and variable costs. O c. A total cost that can change in proportion to changes in the number of products produced. O d. Total cost never changes in proportion to any changes in related levels of volume or activity. O e. An important cost to identify so managers can make important management decisions.
What type of cost drivers do modern costing systems use and how does it differ from the cost drivers used by traditional costing systems? List two aspects to consider when selecting cost drivers that are to be used for cost prediction purposes.
When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest one to use to establish the price. OA. Manufacturing cost B. Full absorption cost OC. Prime cost OD. Variable costs
Which of the following statements is FALSE? a. There is a cause-and-effect relationship between the cost driver and the amount of cost. b. Over the long run all costs have cost drivers. c. Volume of production is a cost driver of direct manufacturing costs. d. Fixed costs have cost drivers over the short run.