True or2. Reasons for using standard costing include:A) Comparing projected costs against actual costsB) Planning and budgeting purposesC) Setting prices in advanceD) Identifying specific areas for process improvementE) All of the above

Part 2: Explanation:Step 1: Comparing projected costs against actual costsStandard costing provides…

Answered: True or 2. Reasons for using standard…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 26E: The ability to assign a cost directly to a cost object by means of a causal relationship is a....

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Similar questions

When is an activity-based costing system better than a traditional allocation system?
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
Explain how a scatter graph is used to identify and measure cost behavior.
The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
For the following activities and their associated resources, identify the following: (1) a cost driver, (2) flexible resources, and (3) committed resources. Also, label each resource as one of the following with respect to the cost driver: (a) variable and (b) fixed.
A) Write difference between absorption costing and variable costing. B) Write cost pool, cost driver, activity cost, budgeting. C) What are the assumption of CVP analysis? What is BEP point? D) Draw a CVP graph.
What is standard cost ? Explain four purposes of standard costing. NB: This concept should be in accouting prefebly in Performance Management Accounting
Which of the following represent the right process order for cost allocation: Select one: O a. Develop the cost allocation formula, calculate the indirect cost rate, then allocate cost to the cost object O b. Develop the cost allocation formula, allocate cost to the cost object, then calculate the indirect cost rate O C. Allocate cost to the cost object, develop the cost allocation formula, then calculate the indirect cost rate O d. Calculate the indirect cost rate, develop the cost allocation formula, then allocate cost to the cost object
1. Discuss the significance of activity based costing(ABC) system in cost management. 2. For purposes of making decisions ,the concept of differential cost and revenue, opportunity cost and sunk cost are vitally important. Briefly explain each cost and its importance to decision making.
Standard Costing helps in : Measuring efficiency Reducing loss Controlling cost
(a) Explain the difference between the throughput and absorption costing methods. (b) Which method(s) are required for external reporting? For internal reporting?

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True or 2. Reasons for using standard costing include: A) Comparing projected costs against actual costs B) Planning and budgeting purposes C) Setting prices in advance D) Identifying specific areas for process improvement E) All of the above