Chapter 14, Problem 47P

1. a

To determine

State the major advantages of standard cost systems.

1. b

To determine

 State the major disadvantages of standard cost systems.

2.

To determine

Find out the participants in setting standards and explain the benefits of their participation.

3.

To determine

Describe the general features and characteristics related with the implementation and operation of a standard cost system that make it an effective tool for cost control.

4.

To determine

State the consequences if the CEO, Person J has an outside consulting firm set Incorporation M’s standards.