The Last Step of the 5-Step Process Costing Procedure Is

question 177

True/False

The last step of the 5-step process costing procedure is to compute the cost per equivalent unit.

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Definitions:

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.

Standard Cost

A predetermined cost of manufacturing, storing, and marketing a product, used for budgeting and performance evaluation.

Variances

Differences between planned or expected financial performances to the actual financial performance.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance against expected results.