Standard Costing Accounting System: Standard costs refer to those costs which are estimated as a standard so that it can be used to compare with the actual costs. The standard cost accounting system is the method which is used to plan the budgets so that the costs are managed and controlled. Variance Account: The variance account is the account in which the variances which are arising are recorded. The variances are the differences which arise when there is difference between the actual costs and the estimated costs. To explain: (a) The basic features of a standard costing accounting system.

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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 26, Problem 19Q

(a).

To determine

Standard Costing Accounting System: Standard costs refer to those costs which are estimated as a standard so that it can be used to compare with the actual costs. The standard cost accounting system is the method which is used to plan the budgets so that the costs are managed and controlled.

Variance Account: The variance account is the account in which the variances which are arising are recorded. The variances are the differences which arise when there is difference between the actual costs and the estimated costs.

To explain: (a) The basic features of a standard costing accounting system.

(b).

To determine

To explain: The type of balance which exists in the variance account when (1) the materials price variance is unfavorable and (2) the labor quantity variance is favorable.

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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 26, Problem 19Q

(a).

To determine

Standard Costing Accounting System: Standard costs refer to those costs which are estimated as a standard so that it can be used to compare with the actual costs. The standard cost accounting system is the method which is used to plan the budgets so that the costs are managed and controlled.

Variance Account: The variance account is the account in which the variances which are arising are recorded. The variances are the differences which arise when there is difference between the actual costs and the estimated costs.

To explain: (a) The basic features of a standard costing accounting system.

(b).

To determine

To explain: The type of balance which exists in the variance account when (1) the materials price variance is unfavorable and (2) the labor quantity variance is favorable.

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 26, Problem 19Q

(a).

To determine

Standard Costing Accounting System: Standard costs refer to those costs which are estimated as a standard so that it can be used to compare with the actual costs. The standard cost accounting system is the method which is used to plan the budgets so that the costs are managed and controlled.

Variance Account: The variance account is the account in which the variances which are arising are recorded. The variances are the differences which arise when there is difference between the actual costs and the estimated costs.

To explain: (a) The basic features of a standard costing accounting system.

(b).

To determine

To explain: The type of balance which exists in the variance account when (1) the materials price variance is unfavorable and (2) the labor quantity variance is favorable.

Expert Solution & Answer

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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 26, Problem 19Q

(a).

To determine