Systems

question 80

Multiple Choice

Systems:

• A) lay out the route that the organization will take in the future.
• B) is the framework in which activities of employees are coordinated.
• C) are formal and informal procedures that govern every day activity.
• D) act as guiding parameters for strategic planning.

---

Definitions:

Standard Costing System

A cost accounting system that assigns predetermined costs to products and services, used to plan budgets and assess performance by comparing actual costs against these standards.

Total Price Variance

The difference between the actual cost of a good or service and its expected cost based on standard pricing.

Quantity Variances

Differences between actual and expected (or standard) quantities of inputs or outputs in the production process, affecting costs.

Standard Cost Sheet

A document that outlines the expected costs associated with the production of a product, including materials, labor, and overhead.