1.

"Standard costs are the expected total cost of completing a job." Is this correct? Explain why or why not. "A standard imposed by a governmental agency is known as a regulation." Is this correct? Explain why or why not. 2.

Explain the similarities and differences between standards and budgets. Contrast the accounting for standards and budgets. 3. Standard costs facilitate management planning. What are the other advantages of standard costs?

4. Contrast the roles of the management accountant and management in setting standard costs.

5. Distinguish between an ideal standard and a normal standard.

6. What factors should be considered in setting (a) the direct materials price standard and (b) the direct materials quantity standard?

7. "The objective in setting the direct labor quantity standard is to determine the aggregate time required to make one unit of product." Is this correct? Explain why or why not. What allowances should be made in setting this standard?

8. How is the predetermined overhead rate determined when standard costs are used?

9. What is the difference between a favorable cost variance and an unfavorable cost variance?

10. In each of the following equations, supply the words that should be inserted for each number in parentheses.

(Actual quantity (1)) (Standard quantity (2)) = Total materials variance ((3) Actual price) (Actual quantity (4)) = Materials price variance (Actual quantity (5)) ((6) Standard price) = Materials quantity variance