Cost Variances: The cost variances depict the deviations from the projected standard price and quantity from the actual ones. It helps in the preparation several management reports so to analyze the performance of the firm with respect to the budgeted funds and the deviations could be fixed for the smooth functioning of activities of the business. Favorable cost variances are when the costs actually incurred are less than the anticipated costs. Unfavorable cost variances are the ones where the actual costs incurred are higher than the anticipated costs. Cost variance and classify as favorable or unfavorable.

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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 21, Problem 6QS

To determine

Cost Variances:

The cost variances depict the deviations from the projected standard price and quantity from the actual ones. It helps in the preparation several management reports so to analyze the performance of the firm with respect to the budgeted funds and the deviations could be fixed for the smooth functioning of activities of the business.
Favorable cost variances are when the costs actually incurred are less than the anticipated costs.
Unfavorable cost variances are the ones where the actual costs incurred are higher than the anticipated costs.

Cost variance and classify as favorable or unfavorable.

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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 21, Problem 6QS

To determine

Cost Variances:

The cost variances depict the deviations from the projected standard price and quantity from the actual ones. It helps in the preparation several management reports so to analyze the performance of the firm with respect to the budgeted funds and the deviations could be fixed for the smooth functioning of activities of the business.
Favorable cost variances are when the costs actually incurred are less than the anticipated costs.
Unfavorable cost variances are the ones where the actual costs incurred are higher than the anticipated costs.

Cost variance and classify as favorable or unfavorable.

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 21, Problem 6QS

To determine

Cost Variances:

The cost variances depict the deviations from the projected standard price and quantity from the actual ones. It helps in the preparation several management reports so to analyze the performance of the firm with respect to the budgeted funds and the deviations could be fixed for the smooth functioning of activities of the business.
Favorable cost variances are when the costs actually incurred are less than the anticipated costs.
Unfavorable cost variances are the ones where the actual costs incurred are higher than the anticipated costs.

Cost variance and classify as favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

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 21, Problem 6QS

To determine