Pick one of the questions below. Explain your response in a paragraph or two.
1. Is a standard cost an estimated cost? What is the primary objective of employing standard costs in a cost system?
2. What is a budget?
3. What is meant by the term management by exception?
4. What are some advantages of using standard costs? What are some disadvantages?
5. Is it correct to consider favorable variances as always being desirable? Explain.
6. How do standards help in controlling production costs?
7. Imagine you are making and selling pizzas for Domino's Pizza. How would you set standards for one pizza to be made and delivered?
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Standard Costs Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0
1. Is a standard cost an estimated cost? What is the primary objective of employing standard costs in a cost system?
2. What is a budget?
3. What is meant by the term management by exception?
4. What are some advantages of using standard costs? What are some disadvantages?
5. Is it correct to consider favorable variances as always being desirable? Explain.
6. How do standards help in controlling production costs?
7. Imagine you are making and selling pizzas for Domino's Pizza. How would you set standards for one pizza to be made and delivered?
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Standard Costs Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0