BuyFindarrow_forward

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
ISBN: 9781285866307

Solutions

Chapter
Section
BuyFindarrow_forward

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
ISBN: 9781285866307
Textbook Problem

Would the use of standards be appropriate in a non-manufacturing setting, such as a fast-food restaurant?

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

  1. 1. Direct materials cost
  2. 2. Direct labor cost, and
  3. 3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Explanation

  • The use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant as the standards can be very appropriate in the service operations which are of repetitive in nature...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is an affirmative action program? What is its purpose?

Foundations of Business (MindTap Course List)

Describe a plant asset.

College Accounting, Chapters 1-27

Can the following equation be used to find the value of a bond with N years to maturity that pays interest once...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How do households dissave?

Economics For Today