Using Standard Costs Quizlet

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Budget data are not journalized in cost accounting systems with the exception of. the application of manufacturing overhead. It is possible that a company 's financial statements may report inventories at. standard costs. A standard differs from a budget because a standard. is a unit amount. Using standard costs. provides a .A standard is like a norm. A standard should be thought of as a norm for production inputs, such as units of materials, hours of labor, percentage of capacity used. Usefulness of Standard Costs. A standard cost system can be used in connection with either process or job order costing. Standard costs aid in planning and .If a company uses standard costs, product cost is calculated based on the standards: STD costs are assigned to products- STD direct material cost, STD labor cost, OH cost allocated based on QTY STD. Using Normal Costing. If a company uses normal costing - DM, DL, are based on actual consumption costs are traced .1. cost management 2. pricing decisions 3. budgetary planning and control 4. financial statement preparation. List four reasons for using standard costs. Manager should subdivide the flexible budget variance into a price variance difference between actual and budgeted price of direct materials and an efficiency variance .