COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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only requires a simple recording system
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uses standard costs to determine the cost of products
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does not have to keep track of actual costs
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All of these answers are correct.
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Detailed explanation-1: -Under the Standard Costing System, which of the following actions is true about the cost variance? Explanation: The real cost of material cost, direct labor, and administration to produce a unit of product is known as actual cost. Variance is the difference between the actual and standard costs.
Detailed explanation-2: -Establishing standard costs B. Measurement of actual costs C. Identifying variances and causes of variance D. Disposing the variances to cost and profit centers E.
Detailed explanation-3: -Formula to calculate standard costs Materials cost = market price per unit x total number of units. Manufacturing overhead = fixed overhead + (variable manufacturing overhead x total number of units)
Detailed explanation-4: -A Standard Cost is a predetermined unit cost based on expected direct materials quantities and expected direct labour time, and priced at a predetermined rate per unit of direct materials and rate per direct labour hour and rate per hour of overhead.