(Learning Objective 1) Which of the following is true? a. Ideal standards are based on currently attainable conditions. b. Practical standards are based on ideal conditions. c. A standard cost is the budgeted cost for one unit. d. Standards should never be updated.

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Answer 1

Textbook Question

Chapter 11, Problem 1QC

(Learning Objective 1) Which of the following is true?

a. Ideal standards are based on currently attainable conditions.
b. Practical standards are based on ideal conditions.
c. A standard cost is the budgeted cost for one unit.
d. Standards should never be updated.

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.

Expert Solution & Answer

To determine

To identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.

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Answer 2

Textbook Question

Chapter 11, Problem 1QC

(Learning Objective 1) Which of the following is true?

a. Ideal standards are based on currently attainable conditions.
b. Practical standards are based on ideal conditions.
c. A standard cost is the budgeted cost for one unit.
d. Standards should never be updated.

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.

Expert Solution & Answer

To determine

To identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.

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Answer 3

Textbook Question

Chapter 11, Problem 1QC

(Learning Objective 1) Which of the following is true?

a. Ideal standards are based on currently attainable conditions.
b. Practical standards are based on ideal conditions.
c. A standard cost is the budgeted cost for one unit.
d. Standards should never be updated.

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.

Expert Solution & Answer

To determine

To identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.

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Answer 4

Textbook Question

Chapter 11, Problem 1QC

(Learning Objective 1) Which of the following is true?

a. Ideal standards are based on currently attainable conditions.
b. Practical standards are based on ideal conditions.
c. A standard cost is the budgeted cost for one unit.
d. Standards should never be updated.

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.

Expert Solution & Answer

To determine

To identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.

Answer 8

Expert Solution & Answer

To determine

To identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To identify: The appropriate answer for the given statement.

Answer 12

Answer to Problem 1QC

Option c. The true statement is a standard cost is the budgeted cost for one unit.

Answer 13

Explanation of Solution

a.

Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.

b.

Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.

c.

A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.

d.

Standards should never be updated is not the correct option because standard once developed needs to be kept updated.