Review the Following Diagram

question 31

Multiple Choice

Review the following diagram.Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?

• A)The employee records the completion of a job and updates finished goods.
• B)Each production authorization results in the increase to the quantity on hand of one product.
• C)Employees manage multiple products.
• D)One employee can authorize production multiple times.

Distinguish between standards and budgets in terms of unit and total amounts.

Analyze the implications of variance on production efficiency and cost management.

Describe the preparation and usage of standard cost cards in a standard costing system.

Comprehend the impact of standard costing on financial statements and reporting.

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Definitions:

Job-Order Costing

A cost accounting system in which costs are assigned to specific jobs or batches, used in industries where goods or services are produced upon request.

T-Accounts

A tool used in accounting to represent the credits and debits for each transaction that occurs for each account within the double-entry bookkeeping system.

Manufacturing Overhead

All manufacturing costs that are not directly linked to the production of goods, such as maintenance of equipment and factory rent.

Job-Order Costing

An accounting method that tracks costs individually for each job, rather than on a per-unit basis.