UNIT 5 QUIZ
Question 7. Question : A "standard cost" is a predetermined
amount (e.g., cost) that:
Student Answer:
Should be incurred under relatively efficient operating
conditions.
Will be incurred for an operation or a specific objective.
Must occur for an operation or a specific objective.
Cannot be changed once it is established by management.
Is useful for planning and control but not inventory valuation
purposes.
Question 8. Question : The difference between the total actual
sales revenue of a period
and the total flexible-budget sales revenue for the units sold
during
the period is the:
Student Answer:
Total flexible-budget variance.