16. Which of the following statements is correct?a. A standard cost system can never be used in both the joborder and process costing systems.b. Standard costing can be used in job order costing system but not in process costing system.c. Standard costing can be used in either the job order costing system or process costing system.d. A standard cost system can be used in process costing system, but not in job order costing system.17. In a process costing system, equivalent units of production are computed to determine the number of completeunits that could have been produced, given no beginning and ending work-in process inventories. If a company usesstandard costing in its process costing system the equivalent units of productiona. are multiplied by the standard cost per unit to compute the total standard cost of units produced.b. are never used.c. are converted to standard equivalent units and then multiplied by the actual cost per unit.d. are assumed to be zero.18. A variance shows a deviation of actual results from standard or budgeted results. In deciding whether toinvestigate a variance or not, management may consider the following factors, excepta. the amount of the variance and the cost of investigation.b. whether the variance is favorable or unfavorable.c. the possibility that investigation will eliminate future occurrences of the variance. d. thetrend of the variances over time.19. The following describe deal standards, excepta. currently attainable standards.b. theoretical or maximum-efficiency standardsc. make no allowance for waste, machine downtime, and spoilage.d. perfection standards.20. Which of the following does not describe practical standards?a. Currently attainable standardsb. Can be used for product costing and cash budgetingc. Performance that is reasonably expected to be achieved with an allowance for normal spoilage, waste, anddowntimed. Negate the need to adjust standards if working conditions change21. Which of the following statements is correct?a. In a variable costing income statement, sales revenue is typically higher than in absorption costing incomestatement.b. When production is not equal to sales, income under absorption costing differs from income under variablecosting due to the difference in treatment (product cost and period cost) of the fixed overhead cost under the twocosting methods.c. In a variable costing system, fixed overhead cost is includedas part of the cost of inventory.d. In an absorption costing system, fixed overhead cost is treated as a period cost

Name: 16. Which of the following statements is correct?a. A standard cost s
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Description: 16. Which of the following statements is correct?a. A standard cost system can never be used in both the joborder and process costing systems.b. Standard costing can be used in job order costing system but not in process costing system.c. Standard c