You are watching: All of the following are advantages of standard costs except they
The total overhead variance is the difference in between actual overhead costs and also budgeted overhead costs.
The overhead variance is the responsibility of the manufacturing department if the cause is inefficient usage of direct labor or machine breakdowns.
Materials price variances are reported come the manufacturing department that did the work and also used the materials.
both favorable and also unfavorable variances the exceed a predetermined quantitative measure up such as percent or dissension amount.
All that the adhering to variances would be reported to the production department the did the work except the
In income statements prepared under a traditional cost accounting system, price of items sold is proclaimed at standard cost and also variances are disclosed separately.
Which declare is correct worrying the costing that inventories in ~ standard cost for outside financial statements?
Generally accepted accounting principles enables standard costing just if far-reaching differences execute not exist in between actual and standard costs.
report inventory and cost of goods sold at standard price as long as there are no far-ranging differences between actual and also standard cost.
Budgeting facilitates the coordination of tasks within the service by correlating the goals of each segment v overall firm objectives.
The chef accountant (controller) has responsibility because that coordinating the ready of the budget.
The master budget plan is a collection of interrelated budgets that constitutes a setup of action for a mentioned time period.
In the straight materials budget, the quantity of direct materials to be purchased is computed by including direct materials required for production to
The budgeted balance paper is emerged from the budgeted balance sheet for the preceding year and the budgets for the present year.
developed from the budgeted balance sheet for the coming before year and also the budgets because that the present year.
a was purchases spending plan replaces the production budget. The manufacturing budgets space not applicable
It is a formal composed statement the management"s plans because that a specified future time period. That becomes crucial basis for examining performance. It promotes efficiency and also serves together a deterrent to waste and inefficiency. Every one of these alternatives are exactly statements.
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The first step in emerging a flexible spending plan is to determine the task index and also the relevant variety of activity.