18. Which statement is untrue regatding material standards? A. Waste and reject allowances are included in material standards B. The standard material cost allows for the best material available to avoid waste C. Material price variance should reflect net of any discount except if the discount is taken or not D. Standard price should reflect the final delivered costs of materials inclusive of allowance for handling costs. E. Answer not given
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
18. Which statement is untrue regatding material standards?
A. Waste and reject allowances are included in material standards
B. The
C. Material price variance should reflect net of any discount except if the discount is taken or not
D. Standard price should reflect the final delivered costs of materials inclusive of allowance for handling costs.
E. Answer not given
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
