CHAPTER 9. STANDARD COSTING: A MANAGERIAL CONTROL TOOL QUESTIONS FOR WRITING AND DISCUSSION 1. Standard costs are essentially . Solution Manual, Managerial Accounting Hansen Mowen 8th Editions_ch 1 – Free download as PDF File .pdf), Text File .txt) or read online for free. Solution Manual, Managerial Accounting Hansen Mowen 8th Editions_ch 15 – Free download as PDF File .pdf), Text File .txt) or read online for free.

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Total CostTotal cost looks at all inventory costs.

Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 14 – [PPT Powerpoint]

Does not mean good orbad! Safety StockSafety stock provides a buffer to reorder point. Thomson, the Star Logo, andSouth-Western are trademarks used herein under license. Prepare journal entries for variances Appendix. DefinitionIs the limitation ofresources or productdemand. Describe the traditional inventorymanagement model.

Increase ordecrease in these items is beyondcontrol of managers. Thomson, the Star Logo, andSouth-Western are trademarks used herein under license.

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Tell how unit standards are set; whystandard costing systems are adopted. Post on May views. Enter the order quantityinto the TC equation in DefinitionTell the amount of input thatshould be used per unit ofoutput.

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JITShutdowns are caused by: Discuss JIT inventory management. Total VariableOverhead VarianceTotal overhead variance is the differencebetween actual and applied variable overhead.

DefinitionTell the amount that should bepaid for the quantity of inputused. Repeat processLO 3 LO 1Total cost TC equation How much should be ordered produced? LO 4Purchasing agent Subordinate everything to decision made in 2 above4. State the purpose of a standard cost sheet. Published on Nov View Download DefinitionAre those constraintswhose available resourcesare fully utilized.

LO 1EOQ equation Ideal standards only work underperfect conditions.

It includesthings such as salaries, depreciation,taxes, and insurance. The EOQ model willcompute the cheapestbatch order size.

Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 9

Economic OrderQuantity LO 1 6. LO 2promote product quality. DefinitionIs a demand-pullmanufacturing system thatrequires goods to be pulledthrough the system by presentdemand. Itincludes things such as indirectmaterials, indirect labor, electricitymaintenance, etc.

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Variable OverheadEfficiency VarianceVariable overhead efficiency variancemeasures change in variable overheadconsumption because relies on direct labor. Fixed OverheadVolume VarianceFixed overhead volume variance measures theeffect of actual output differing from outputused to compute predetermined standard fixedoverhead rate.

Increase or decreasein these items is beyond control ofmanagers. When should the order beplaced setup done? BackgroundThe total cost TC formula includes thefollowing: If variances are significant, that isif they are beyond our controllimits, they should be investigatedif it is cost beneficial to do so. Attainablestandards can be achieved underefficient operating conditions. DefinitionIs a model that calculates thebest quantity to order orproduce.