True / False Questions
1.A standard cost is the per unit cost actually incurred under normal operating conditions.
2.A good standard cost system should always generate unfavorable variances.
3.Standard cost systems are generally compatible with job cost systems or with process cost systems.
4.Standard costs actually are ideal costs per unit.
5.A standard cost is predetermined, that is, determined before actual costs of the current period have been computed.
6.In a standard cost system actual costs are recorded in Material, Direct Labor, and Overhead accounts, but standard costs are charged to Work in Process.
7.In a standard cost system, actual costs are charged to work in process as they are incurred.
8.In most companies using standard cost procedures, the costs charged to Work in Process, Finished Goods, and Cost of Goods Sold are the actual costs, not the standard costs.
9.In setting standards, management's level of performance expectation must be something less than ideal.
10.Standard costs are typically reviewed once per year.