Concept explainers
(Learning Objective 1) Which of the following is true?
- a. Ideal standards are based on currently attainable conditions.
- b. Practical standards are based on ideal conditions.
- c. A
standard cost is the budgeted cost for one unit. - d. Standards should never be updated.
To identify: The appropriate answer for the given statement.
Answer to Problem 1QC
Option c. The true statement is a standard cost is the budgeted cost for one unit.
Explanation of Solution
a.
Ideal standards are based on currently attainable conditions is not the correct option because Ideal standards are the standards which are based on ideal conditions.
b.
Practical standards are based on ideal conditions is not the correct option because Practical standards are based on currently attainable conditions.
c.
A standard cost is the budgeted cost for one unit is the correct option because standard cost is the budgeted cost for a unit.
d.
Standards should never be updated is not the correct option because standard once developed needs to be kept updated.
Want to see more full solutions like this?
Chapter 11 Solutions
Managerial Accounting, Student Value Edition (5th Edition)
- Assume you are the manager responsible for implementing a new service. The time to perform the service is subject to the learning curve. Would you prefer that the new service have a learning rate of 85 percent or 80 percent? Why?arrow_forwardWould "design cost (school logo)" classifiy as indirect or direct expense? explain Should Design cost be added to calculate the prime cost? explainarrow_forwardWhy is SMART goals a good example of one’s learning of that particular unit and topic. Please reference specific skill/knowledge acquired when completing this sectionarrow_forward
- 1- What are the four cost categories of a costs of quality program? 2- What are relevant revenues and cost delays? 3- How do managers use financial and nonfinancial measures to evaluate quality? 4- Describe the three main measures used in the theory of constraints 5- What are the steps managers can take to manage bottlenecks?arrow_forwardLearning Outcomes Addressed: This assessment item addresses the following unit learning outcomes (ULOs) as described in the Unit Outline: 1. Clear understanding of various cost terms, cost behaviour and the role of overhead cost in pricing decisions 2. Ability to apply Activity Based Costing (ABC) techniques to an actual business in order to arrive at the most accurate costing for products. requirement: kindly adress these two question in detail. (please avoid any kind of plagorism and copy past and then paraphrasing )arrow_forwardThe following if-then statements were taken from a Balanced Scorecard: a. If employee capabilities increase, then process time decreases. b. If process time decreases, then customer retention will increase. c. If customer retention increases, then market share will increase. d. If market share increases, then revenues will increase. Required: 1. Identify the lead and lag variables, and explain your reasoning. 2. Discuss the implications of Requirement 1 for the financial and learning and growth perspectives. 3. Using the first if-then statement, explain the concept of double-loop feedback.arrow_forward
- S15-8 Identify ethical standards violated (Learning Objectives 1, 2, & 3) For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility). Refer to Exhibit 1-7 for the complete standard. Chris is asked to prepare the GRI report for the year, but he has not attended GRI training. He decides to muddle his way through the report. George is frustrated because he feels that his company is not moving fast enough to adopt sustainable practices and GRI reporting. He talks to a reporter about some potential environmental fines the company might receive, thinking that if the company is embarrassed publicly, it will move faster on sustainability initiatives. Kayleigh does not disclose that her brother is the president of the consulting firm her organization is hiring for some GRI reporting work. Cynthia is a staff accountant at Briar Industries. Since Briar's GRI…arrow_forward3. Can the teacher satisfy the needs of all types of learners in a large class? Why & why not?arrow_forwardWhich of the following statements is not an Objective of the cost management system Select one: a. Identify and evaluate new activities that can improve performance. b. Determine efficiency and effectiveness of major activities. c. Publish the annual financial statements. d. Measure the cost of resources consumed.arrow_forward
- 6. A difference between standard costs used for cost control and budgeted costs a)Can exist because standard costs represent what costs should have been while budgeted cost represent expected actual costs. b)Can exist because established budgeted costs involve employee participation and standard cost do not c)Can exist because standard cost must be determined after the budget is prepared. d)Can exist because budgeted costs should be verified first by actual activities while standard cost are based on project costs.arrow_forwardWhich of the following is not an advantage of budgeting? a) Forces managers to planb) Provides information for decision makingc) Guarantees an improvement in organizational efficiencyd) Provides a standard for performance evaluatione) Improves communication and co-ordinationarrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning