Under Standard Cost Procedures, Any Differences Between Actual Costs and Standard

question 50

Multiple Choice

Under standard cost procedures, any differences between actual costs and standard costs are:

• A) Ignored until the end of the fiscal period, when they are shown in footnotes to the income statement.
• B) Recorded in variance accounts.
• C) Added to or subtracted from the standard cost amount immediately.
• D) Treated as extraordinary production gains or losses.

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Definitions:

Customer Order Entry

A system or process that captures and records customer requests for goods or services.

Order Accuracy

The degree to which completed orders correctly match the initial specifications or requests in terms of quantity, type, and quality.

Customer Order Fulfillment

The process of receiving, processing, and delivering orders to customers, ensuring their requirements are met timely and accurately.

Order Accuracy

The rate at which orders are filled correctly, reflecting the effectiveness of a company's picking and shipping processes.