The standard costing is applied to record the costs at standard or budgeted amounts along with their actual amounts and variances. The standard costing allows the presentation of actual cost and their variances together. To indicate: if the standards should be used to identify who to blame for problems.

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Answer 1

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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.

Chapter 10, Problem 10.6Q

To determine

Concept introduction:

The standard costing is applied to record the costs at standard or budgeted amounts along with their actual amounts and variances. The standard costing allows the presentation of actual cost and their variances together.

To indicate: if the standards should be used to identify who to blame for problems.

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Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be: A)a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for The adjusting entry to remove the old merchandise inventory balance would be:

Answer 2

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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.

Chapter 10, Problem 10.6Q

To determine

Concept introduction:

The standard costing is applied to record the costs at standard or budgeted amounts along with their actual amounts and variances. The standard costing allows the presentation of actual cost and their variances together.

To indicate: if the standards should be used to identify who to blame for problems.

Expert Solution & Answer

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Answer 3

Question

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.

Chapter 10, Problem 10.6Q

To determine

Concept introduction:

The standard costing is applied to record the costs at standard or budgeted amounts along with their actual amounts and variances. The standard costing allows the presentation of actual cost and their variances together.

To indicate: if the standards should be used to identify who to blame for problems.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 10, Problem 10.6Q

To determine