Budgeting is an estimation concept regarding future course action. The management of a company is attempting to predict the future based historical or market information available. Based on the information available, a standard performance is determined whether it is related to quantity or cost. A fixed budget is prepared based on the projected sales or production and standard cost predetermined by the company. To Match : Match the terms a through e with their correct definition Given: Definitions 1. Quantity of input required under normal conditions. 2. Quantity of input required if a production process is 100% efficient. 3. Managing by focusing on large differences from standard costs. 4. Record that accumulates standard cost information. 5. Preset cost for delivering a product or service under normal conditions.

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Answer 1

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 23, Problem 5E

To determine

Introduction:

Budgeting is an estimation concept regarding future course action. The management of a company is attempting to predict the future based historical or market information available. Based on the information available, a standard performance is determined whether it is related to quantity or cost. A fixed budget is prepared based on the projected sales or production and standard cost predetermined by the company.

To Match:

Match the terms a through e with their correct definition

Given:

Definitions

1. Quantity of input required under normal conditions.

2. Quantity of input required if a production process is 100% efficient.

3. Managing by focusing on large differences from standard costs.

4. Record that accumulates standard cost information.

5. Preset cost for delivering a product or service under normal conditions.

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Students have asked these similar questions

The total manufacturing costs added during the period are?

Cash: 35000, Accounting receivable: 52000

The actual cost of direct labor per hour is $16.25 and the standard cost of direct labor per hour is $15.00. The direct labor hours allowed per finished unit is 0.60 hours. During the current period, 4,500 units of finished goods were produced using 2,900 direct labor hours. How much is the direct labor rate variance? A. $3,625 favorable B. $3,625 unfavorable C. $4,350 favorable D. $4,350 unfavorable

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 23, Problem 5E

To determine

Introduction:

Budgeting is an estimation concept regarding future course action. The management of a company is attempting to predict the future based historical or market information available. Based on the information available, a standard performance is determined whether it is related to quantity or cost. A fixed budget is prepared based on the projected sales or production and standard cost predetermined by the company.

To Match:

Match the terms a through e with their correct definition

Given:

Definitions

1. Quantity of input required under normal conditions.

2. Quantity of input required if a production process is 100% efficient.

3. Managing by focusing on large differences from standard costs.

4. Record that accumulates standard cost information.

5. Preset cost for delivering a product or service under normal conditions.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

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 23, Problem 5E

To determine

Introduction:

Budgeting is an estimation concept regarding future course action. The management of a company is attempting to predict the future based historical or market information available. Based on the information available, a standard performance is determined whether it is related to quantity or cost. A fixed budget is prepared based on the projected sales or production and standard cost predetermined by the company.

To Match:

Match the terms a through e with their correct definition

Given:

Definitions

1. Quantity of input required under normal conditions.

2. Quantity of input required if a production process is 100% efficient.

3. Managing by focusing on large differences from standard costs.

4. Record that accumulates standard cost information.

5. Preset cost for delivering a product or service under normal conditions.

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 23, Problem 5E

To determine