Many Firms Use Which One of the Following Terms to Indicate

question 30

Multiple Choice

Many firms use which one of the following terms to indicate the use of job costing in service industries?

• A)Actual costing.
• B)Normal costing.
• C)Project costing.
• D)Industry costing.
• E)Standard costing.

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Definitions:

Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, multiplied by the quantity of materials used.

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.