Historical experience should be used with caution in setting standards because

Standards set by engineering studies

The standard cost per unit ofoutput for a particular input is calculated as

A currently attainable standard is one that

An ideal standard is one that

Reasons for adopting a standard costing system include

Standard costs are developed for

The underlying details for the standard cost per unit are provided in

The standard quantity of materials allowed is computed as

The standard direct labor hours allowed is computed as

The total (budget) variance is computed as

Investigating variances from standard is

Responsibility for the materials price variance typically belongs to

The materials price variance is usually computed

Responsibility for the materials usage variance is usually assigned to

Responsibility for the labor rate variance typically is assigned to

Responsibility for the labor efficiency variance typically is assigned to

Which of the following items describes practices surrounding the recording of variances?

Which of the following is true concerning significantly large labor variances?

For performance reporting, it is best to compare actual costs with budgeted costs using

To create a meaningful performance report, actual costs and expected costs should be compared

To help deal with uncertainty, managers should use

To help assess performance, managers should use

A firm comparing the actual variable costs ofproducing 10,000 units with the total variable costs of a static budget based on 9,000 units would probably see

The total variable overhead variance is the difference between

A variable overhead spending variance can occur because

Because the calculation of both variances is based on direct labor hours, an unfavorable
labor efficiency variance implies that

The total variable overhead variance can be expressed as the sum of

In a performance report that details the spending and efficiency variances, which of the following columns will be found?

The total fixed overhead variance is

The total fixed overhead variance can be expressed as the sum of

Because of the nature of fixed overhead items, the difference between the actual fixed
overhead cost and the budgeted fixed overhead is

A favorable volume variance can occur because

Responsibility for the volume variance usually is assigned to

Activity flexible budgeting makes it possible to

In activity-based budgeting, flexible budget formulas are created using

price standard

quantity standard

standard cost sheet

Why Standard Cost Systems Are Adopted

price or rate variances

usage or efficiency variances

favorable variance