• What are the basic objectives in the use of standard costs?
• What is meant by reporting by the principle of exceptions, as the term is used in reference to cost control?
• What are the two variances between the actual cost and the standard cost for direct materials?
• The materials cost variance report for Nickols Inc. indicates a large favorable materials price variance and a significant unfavorable materials quantity variance. What might have caused these offsetting variances?
• What are the two variances between the actual cost and the standard cost for direct labor?
• Who generally has control over the direct labor cost variances?