The Following Information Is Available for Norton Company: Norton's

question 233

Multiple Choice

The following information is available for Norton Company: Norton's cost of goods sold is

• A) $345,000.
• B) $330,000.
• C) $294,000.
• D) $285,000.

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Definitions:

Standard Costing System

An accounting system that assigns fixed costs to products based on standard assumptions about the production process.

Variance Accounts

Accounts used in managerial accounting to record the differences between actual costs and standard (budgeted) costs.

Direct Material Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity used.

Costs Of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor, but excluding indirect expenses such as sales and distribution costs.