5 Questions
Which of the following best describes standard costs?
Costs associated with a competent management's efficient use of production resources
What is the purpose of standard costing?
To compare what should be accomplished for a normal price and what was actually done at a cost
What do inventories and cost of products sold accounts contain in a standard cost system?
Standard costs of manufacturing operations
What do cost variances represent in a standard cost system?
The difference between standard costs and the real manufacturing costs
What does a positive balance in a variance account signify?
A deviation from the profit strategy by the business
Test your knowledge on standard costs and standard costing with this quiz. Learn about the comparison between what should be accomplished for a normal price and what was actually done at a cost. Explore how inventories and cost of products sold accounts are impacted in a standard cost system.
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