1.Ideal standards, while requiring managers to work to ensure that employees accept them, can be very useful in forecasting and planning.

A.True

B.False

2.Which of the following statements is not true about the use of a standard cost system?

A.The use of standard costs can greatly simplify bookkeeping.

B.As long as costs do not fall significantly outside of standards managers can usually focus on other issues.

C.Standards can be used by individuals to judge their own performance.

D.A favourable variance will always be good thing for a business.

3.The standard cost card for a product includes a list of all inputs required to complete one unit of the product with the standard quantity and standard cost of each input.

A.True

B.False

4.In a standard cost system, the resources applied to production are recorded as additions to work in process inventory using the standard quantities and the standard prices for each actual unit added.

A.True

B.False