How Are Costs Assigned in a Standard Cost System

question 136

Multiple Choice

How are costs assigned in a standard cost system?

• A) actual direct materials, actual direct labour, and actual manufacturing overhead
• B) actual direct materials, actual direct labour, and budgeted manufacturing overhead
• C) standard direct materials, standard direct labour, and standard manufacturing overhead
• D) budgeted direct materials, standard direct labour, and standard manufacturing overhead

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Definitions:

Time Axis

The graphical representation of time in charts or graphs, often serving as the horizontal axis to plot time-dependent data.

Service Blueprinting

A process analysis technique that lends itself to a focus on the customer and the provider’s interaction with the customer.

Process-focused Facilities

Operations facilities organized around specific activities or processes, optimizing the production of a small variety of similar products.

Equipment Utilization

A measure of the degree to which a piece of equipment is being used compared to its full potential over a specific period, often expressed as a percentage.