If There Is a Difference Between Actual Performance and Standard

question 63

Multiple Choice

If there is a difference between actual performance and standard performance,the reason is:

• A)lower than expected performance.
• B)higher than expected performance.
• C)poorly calculated standard.
• D)all of the above

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Definitions:

Materials

The raw items and components used in the production of goods.

Process Costing

An accounting methodology used for homogeneous products, attributing costs to units of product through an average or a similar method.

Conversion Costs

The combined costs of direct labor and manufacturing overhead expenses, representing the costs necessary to convert raw materials into finished goods.

Equivalent Unit

A concept used in cost accounting to convert partially completed goods into a number of complete units of output, allowing for a consistent measure of output.