1. How does a standard cost accounting sys- tem work, and why is it valuable to management?

2. What is the difference between the standard cost and the actual cost of production?

5. How are standards for materials and labor costs determined?

6. What is a variance?

9. Is a favorable variance "good" and an unfavorable variance "bad"? Explain.

12. Are actual costs or standard costs charged to Work in Process in a standard cost system?