The Process of Setting Standards, Receiving Feedback on Actual Performance

question 198

Multiple Choice

The process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance.

• A)Control
• B)Monitoring
• C)Eye balling
• D)Comparing

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Definitions:

First-In, First-Out Method

An accounting method where the costs of the earliest goods purchased or produced are the first to be expensed.

Equivalent Units

A concept in cost accounting used to apportion costs to units of production in processes where the product is not completed at the end of a period.

Milling Department

A specific section within a manufacturing facility where materials are ground, cut, or otherwise processed through milling operations.

First-In, First-Out Method

This is an inventory valuation method where goods first added to inventory are the first ones to be sold.