Questions from Cost Management

Q: Which of the following should a firm use as the standard in

Which of the following should a firm use as the standard in assessing production efficiencies: standards based on ideal performance, standards based on attainable performance, or standards based on th...

Q: Discuss behavioral concerns in establishing and implementing a standard cost system.

Discuss behavioral concerns in establishing and implementing a standard cost system.

Q: “As long as the total actual factory overhead cost is not

“As long as the total actual factory overhead cost is not significantly different from the total standard applied factory overhead cost for the period, there is no need to conduct further analyses of...

Q: Explain two available treatments for disposing of overhead cost variances at the

Explain two available treatments for disposing of overhead cost variances at the end of a period.

Q: What provisions of U.S. GAAP (viz., FASB

What provisions of U.S. GAAP (viz., FASB ASC 330-10-30, previously SFAS No. 151—available at www.fasb.org) pertain to the issue of end-of-period disposition of overhead cost variances? Be specific.

Q: MicroTech Corporation is subject to a 35% income tax rate.

MicroTech Corporation is subject to a 35% income tax rate. Given the following information about the firm’s capital structure, calculate the corporation’s weighted-...

Q: What factors should be considered in determining whether to investigate a variance

What factors should be considered in determining whether to investigate a variance?

Q: “The direction of a variance (favorable or unfavorable) is

“The direction of a variance (favorable or unfavorable) is irrelevant in decisions regarding whether or not to investigate the variance.” Do you agree? Why or why not?

Q: What is the difference between the applied variable overhead cost and the

What is the difference between the applied variable overhead cost and the total variable overhead cost in the flexible budget? What is the difference between the applied factory overhead cost and the...

Q: List causes that could lead to a variable overhead spending variance.

List causes that could lead to a variable overhead spending variance.