Answer the Following Questions Regarding Costing Systems

question 12

Essay

Answer the following questions regarding costing systems.
a.What is the difference between a normal costing system and a standard costing system?
b.What adjustments are required at the end of each period for each?
c.What is an advantage of standard costing?
d.Are inventory and costs of goods sold accounts reported on financial statements at actual cost or standard cost?

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.

Order Paper

A negotiable instrument that is payable to a specific person or their order, allowing the transfer of ownership through endorsement.

Special Indorsement

An endorsement on a negotiable instrument that specifies the person to whom, or to whose order, the instrument can be paid.

Blank Indorsement

A type of endorsement on a negotiable instrument where the endorser does not specify an endorsee, making it payable to the bearer.