Standard Costing

question 31

Multiple Choice

Standard costing

• A)establishes price and quantity standards for inputs.
• B)provides journal entry support.
• C)is not used in unit costing.
• D)none of these.

Recognize the different roles managers can play in problem-solving, including problem solvers, avoiders, and seekers.

Understand the applications and importance of expert systems in managerial decision making.

Differentiate between various types of problems and decisions, including structured, unstructured, crisis, performance opportunities, and deficiencies.

Comprehend the decision-making process, including problem identification, alternative solution generation, and solution evaluation.

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Definitions:

Direct Labour

The wages paid to workers directly involved in the production of goods or services.

Labour Efficiency Variance

The difference between the budgeted or standard labor hours expected for production and the actual labor hours used.

Standard Labour Hours

The number of labor hours predetermined as necessary to complete a job or task under normal conditions.

Actual Labour Hours

The actual amount of labor time spent on a particular job or task, measured in hours.