15th Edition

ISBN: 9780133428704

Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

Publisher: PEARSON

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A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in a…

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Textbook Question

Chapter 7, Problem 7.7Q

List four reasons for using standard costs.

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.

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Chapter 7, Problem 7.6Q

Chapter 7, Problem 7.8Q

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Platz Company makes chairs and planned to sell 4,100 chairs in its master budget for the coming year. The budgeted selling price is $36 per chair, variable costs are $17 per chair, and budgeted fixed costs are $45,000 per month. At the end of the year, it was determined that Platz actually sold 4,400 chairs for $145,700. Total variable costs were $50,375 and fixed costs were $38,000. The volume variance for sales revenue was: a. $14,500 unfavorable b. $11,200 favorable c. $10,800 favorable d. $12,700 favorable

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Chapter 7 Solutions

Cost Accounting (15th Edition)

Ch. 7 - What is the relationship between management by...Ch. 7 - What are two possible sources of information a...Ch. 7 - Distinguish between a favorable variance and an...Ch. 7 - What is the key difference between a static budget...Ch. 7 - Why might managers find a flexible-budget analysis...Ch. 7 - Describe the steps in developing a flexible...Ch. 7 - List four reasons for using standard costs.Ch. 7 - How might a manager gain insight into the causes...Ch. 7 - List three causes of a favorable direct materials...Ch. 7 - Describe three reasons for an unfavorable direct...

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