Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

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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 16, Problem 62P

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Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

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Answer 2

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 16, Problem 62P

To determine

Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

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 16, Problem 62P

To determine

Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

Expert Solution & Answer

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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 16, Problem 62P

To determine

Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

Expert Solution & Answer

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Answer 5

Chapter 16, Problem 62P

To determine

Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

Answer 6

Chapter 16, Problem 62P

To determine

Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

Answer 7

Chapter 16, Problem 62P

To determine

Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

Solution Summary: The author explains that lowering the standard cost by reducing the time to complete the operations will result in decreased productivity and consequently decreased profit margins.

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Explain if the lowering of the standard cost can result in improved profit margin and increased productivity.

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