Standard cost : In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Standard cost system: Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following: How much a product should cost (standard costs). How much actually does it cost (actual cost). The standard cost per dining room table.

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Answer 1

Question

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

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Answer 2

Question

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

Answer 6

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

Answer 7

Chapter 8, Problem 2E

(a)

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

Standard cost system:

Standard cost system to the accounting systems which use standards for product cost. Standard cost system enables management to determine the following:

How much a product should cost (standard costs).

How much actually does it cost (actual cost).

The standard cost per dining room table.

Answer 8

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

Answer 9

(b)

To determine

To explain: The reason behind the use of standard cost system by Company S.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 8 - What are the basic objectives in the use of...Ch. 8 - What is meant by reporting by the principle of...Ch. 8 - What are the two variances between the actual cost...Ch. 8 - The materials cost variance report for Nickols...Ch. 8 - A. What are the two variances between the actual...Ch. 8 - Prob. 6DQ Ch. 8 - Would the use of standards be appropriate in a...Ch. 8 - A. Describe the two variances between the actual...Ch. 8 - If variances are recorded in the accounts at the...Ch. 8 - Prob. 10DQ

Solution Summary: The author explains the term standard cost, which refers to the practice of replacing an expected cost for an actual cost.

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