Private Firms and Public Bureaus Differ in That _____

question 94

Multiple Choice

Private firms and public bureaus differ in that _____

• A)private firms have more incentive to act on consumer feedback.
• B)private firms have less incentive to eliminate waste and inefficiency.
• C)private firms are usually financed by government appropriations, while bureaus cover their costs if enough people buy their products.
• D)private firms do not have a profit incentive to satisfy consumer wants, but bureaus have a profit incentive to satisfy consumers.
• E)ownership is not transferable in private firms, while ownership is transferable in bureaus.

Recognize how standard costs are implemented and utilized within the general ledger and accounting systems.

Appreciate the process and complexity involved in setting standard costs, including the roles of various departments.

Identify and calculate different types of variances, such as materials quantity variance and labor variance.

Understand the significance and calculation of predetermined overhead rates and their application in standard costing.

---

Definitions:

Estimated Costs

Costs that are predicted or forecasted based on current information and experience, used for budgeting and planning purposes.

Installment Contract

A contract that requires payments to be made in regular intervals over a period in exchange for goods or services.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the costs of completion, disposal, and transportation.