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Assignment
1. In accounting we designate a standard as being favorable or unfavorable, what do these two terms mean? Is an unfavorable variance "bad"?
2. Identify those who should participate in setting standards, and describe the benefits of their participation in the standard-setting process.
3. What characteristics of a standard costing system make it an effective tool for cost control?
4. When should the material price variance be calculated and when should the material usage variance be calculated? Who is normally responsible for these variances?
5. Will the actual quantity used in the material price variance and material usage variance always equal?
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