Fill in the following blanks: Standard Costing a. A(n) _____ standard allows for normal and efficient operations
Question:
Fill in the following blanks:
Standard Costing
a. A(n) _____ standard allows for normal and efficient operations and takes into consideration typical production problems.
b. A budget for a single unit of product is referred to as a(n) _____.
c. Managers must compare actual and budgeted results to control operations. This comparison process is generally called ____.
d. The ____ indicates how much a company should generally pay for the materials, labor, or overhead for a single unit of product.
e. _____ is often the key to effective variance analysis.
Complete the preceding incomplete statements with the correct term from the following list of terms provided (note that not all terms will be used): variance analysis, ideal standard, practical standard, standard cost, standard price, management by exception, task analysis.
Using Variance Analysis
a. Variance analysis has a number of ____ when it is used in a modern manufacturing environment.
b. The focus of traditional variance analysis is _____ rather than on customer service, delivery time, and other nonfinancial measures.
c. Management by exception suggests that it is ____ necessary to investigate all variances.
d. ____ is a likely result of using ideal standards when managers continually face in favorable variances.
e. In order to interpret variances, the ____ must be determined.
Expert Answer:
