What are the basic objectives in the use of standard costs? What are the two variances between the actual cost and the standard cost for direct materials? Would the use of standards be appropriate in a nonmanufacturing setting, such as a fast-food restaurant? Why? Why not?

Q: fixed and variable costs?

A: Fixed Cost -:A fixed cost is a cost that does not differ in a period usually in the short term, even…

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

Q: ABC systems get more accurate as more activities are identified and analyzed. Critique the following…

A: The statement "A company should look to break its production process into as many activities as…

Q: Which of the three methods for allocating costs of products can lead to significant product cost…

A: Three methods for allocating cost of product is: 1) Single Plant wide factory overhead rate 2)…

Q: a. TRADITIONAL - What is traditional cost allocation for manufacturing overhead? Give an example of…

A: For ascertaining the accurate product cost or total production cost of the manufacturing…

Q: If the organization operates at an activity level outside the relevant range, any cost predictions…

A: Answer:-  Relevant range meaning:- The term "relevant range" describes a particular activity level…

Q: What is different than traditional costing that uses a volume-based driver? Can you give me some…

A: There are many different types of costing methods, out of which the selection of costing method to…

Q: What is a segment of an organization? Give a few examples of segments of Walmart Corporation. What…

A: Business or organizations are usually divided into various departments, each with its own specific…

Q: Lancelot Group of Companies would like to estimate its cost function for proper cost management…

A: cost function is a function that uses the formula in order to predict the cost that will be…

Q: Which of the following statements are false regarding Activity-Based Costing? Select one: O A.…

A: Solution:Correct answer : (d) Activity-based Costing follows the same basic calculation methods as…

Q: o alternatives for prod

A: The two alternatives for product costing systems are job costing and process costing. Job Costing:…

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

Q: 2. What are the key reasons for product cost differences between simple costing systems and ABC…

A: Financial accounting and cost accounting are two significant branches of accounting. Financial…

Q: What role do standard costs play in controlling the operations of a business? How are standard costs…

A: Cost Accounting -Cost accounting is a commercial activity in which we track, analyze, compile, and…

Q: Which of the following would not be a period cost? Group of answer choices Research and development…

A: Solution: Period cost is the cost that is expensed in the income statement and same is not…

Q: Why might two different companies in the same industry have different cost systems?

A: A cost system, sometimes referred to as a cost accounting system, is an organized method or series…

Q: Between the LIFO and FIFO methods of pricing the issues of materials which one do you think is…

A: 1. LIFO - LIFO (Last in First Out) is the inventory valuation method where inventory produced or…

Q: activity-based costing systems have a tendency to distort product costs. True or False?

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: Explain the following concepts: indirect materials Mixed cost Budgeting Margin of safety

A: The total manufacturing cost of the product is determined by including the direct material, labor,…

Q: Identify the two ways for reducing product costs to a predetermined level. Which is more widespread…

A: STEP 1:   The two ways to reduce the product cost to a predetermined level are    Process costing…

Q: Is there a benefit behind using either FIFO, LIFO, or the weighted average costing method?

A: Yes, there are benefits to using each of the three inventory costing methods - FIFO…

Q: Which of the following is/ are considered as the uses of standard costing?   Statement 1:…

A: Introduction:- Standard Costing:- The practice of estimating the cost of a production process is…

Q: Would a PROCESS COSTING SYSTEM be ideal for a clothing line business? With regard to process…

A: A costing technique in which production is carried out through multiple process with the end product…

Q: Which of these costs would be the most difficult to estimate when you know exactly how many units…

A: When you know exactly how many units will be produced, the cost of materials used in the product…

Q: Provide any two (2) measures to reduce the undesirable effects of absorption costing

A: Adsorption costing refers to the method of costing that considers variable as well as fixed costs…

Q: How can variable costing be used in service companies?

A: Variable Costing: The variable costing is the method of costing in which only the variable…

Q: Why would a business that uses traditional costing systems consider implementing activity-based…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: Which two categories of costs influence the choice of how manystorage facilities a firm might have…

A: The management of the company makes a decision that benefits the company most. when an investment or…

Q: Compare actual and normal costing. What is the benefit of each? What is a circumstance in which each…

A: Actual Costing: Actual costing is a cost bookkeeping framework that utilizes genuine cost,…

Q: Which of the following statements is true? O a. Activity-based costs per unit are always greater…

A: The volume based costing represents the cost allocation to a single cost pool. The high volume…

Q: The concerns that encourage management to look at the life- cycle costing are? 1.Opportunity Costs…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.