Standard costs are difficult to use with a process costing

Reference no: EM131012678

a. Fixed overhead costs are best controlled on a unit-by-unit basis of products produced.

b. Fixed overhead costs are mostly incurred to provide the capacity to produce and are best controlled on a total basis at the time they are originally negotiated.

c. Fixed overhead costs are constant on a per-unit basis at all different activity levels within the relevant range.

d. Fixed overhead costs are best controlled as to spending during the production process.

e. Standard costs are estimates of costs attainable only under the most ideal conditions.

f. Standard costs are difficult to use with a process costing system.

g. Standard costs can, if properly used, help motivate employees.

h. Standard costs require that significant unfavorable variances be investigated, but do not require that significant favorable variances be investigated.

Reference no: EM131012678

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