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1.1 a) are rigorous but attainable. are the standards generally used in a master budget. c) reflect optimal performance under perfect operating conditions. d) will
1.1 a) are rigorous but attainable. are the standards generally used in a master budget. c) reflect optimal performance under perfect operating conditions. d) will always motivate employees to achieve the maximum output. 2. What is a standard cost? a. The total number of units times the budgeted amount expected b. Any amount that appears on a budget c. The total amount that appears on the budget for product costs d. The amount management thinks should be incurred to produce a good or service 3.The difference between a budget and a standard is that a. a budget expresses what costs were, while a standard expresses what costs should be. b. a budget expresses management's plans, while a standard reflects what actually happened. c. a budget expresses a total amount, while a standard expresses a unit amount. d. standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system. 4.A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n) a. ideal standard. b. loose standard. c. tight standard. d. normal standard. 5. The final decision as to what standard costs should be is the responsibility of a) the quality control engineer. b) the managerial accountants. c) the purchasing agent d) management. 6. The two levels that standards may be set at are a) normal and fully efficient. b) normal and ideal. c) ideal and less efficient. d) fully efficient and fully effective
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