Chapter 14, Problem 31E

1.

To determine

Explain the major advantages of using a standard cost accounting system.

2.

To determine

Explain the types of information that are useful in setting standards and the conditions that must be present to support the use of standard costing.

3.

To determine

Explain the applicability or non-applicability of using standard costing for a product classified as (a) a cash cow and (b) a question mark.

4.

To determine

Identify the some primary criticisms of using standard cost systems in today’s manufacturing environment.