1. Suppose a company is implementing lean accounting throughout the organization. Why might standard costing not be beneficial for that company?

2. What advantages might be experienced by a company if it adopts ideal standards for its direct material standards and direct labor standards? What advantages are there to using practical standards? As an employee, which would you prefer and why? Does your answer change if you are the manager in charge of production? Why or why not?

3. Select a product with which you are familiar. Describe what type of standards (direct material and direct labor) might be in effect for that product wherever it is produced. For each of these standards, discuss how those standards may become outdated. How frequently would you think the company would need to evaluate each of the standards?

4. What does the direct materials efficiency variance measure? Who is generally responsible for the direct materials efficiency variance? Describe two situations that could result in a favorable direct materials efficiency variance. Describe two situations that could result in an unfavorable direct materials efficiency variance.

5. What does the direct labor price variance measure? Who is generally responsible for direct labor price variance? Describe two situations that could result in a favorable labor price variance. Describe two situations that could result in an unfavorable direct labor variance.

6. What does the direct labor efficiency variance measure? Who is generally responsible for the direct labor efficiency variance? Describe two situations that could result in a favor-able direct labor efficiency variance. Describe two situations that could result in an unfavorable direct labor efficiency variance.

7. Describe at least four ways a company could use standard costing and variance analysis.

8. What are the two manufacturing overhead variances? What does each measure? Who within the organization would be responsible for each of these variances?

9. Suppose a company that makes and sells spaghetti sauce in plastic jars makes a change to its bottle that allows it to use significantly less plastic in each bottle. Describe at least four ways this change could help the company and its sustainability efforts.