Chapter 8

1. Standard costs are based solely on actual costs incurred in past.

a. True

b. False

2. Cost centers have well-defined links between the cost of the resources and the resulting products.

a. True

b. False

3. Although expensive to install and maintain, a standard cost accounting system can save a company considerable amounts of money by reducing resource waste.

a. True

b. False

4. Standard costing can be used only with a process costing system.

a. True

b. False

5. Comparing what did happen with what should have happened aids in the performance evaluation of a company.

a. True

b. False