Answered

IDNLearn.com: Where your questions meet expert advice and community support. Our platform provides detailed and accurate responses from experts, helping you navigate any topic with confidence.

Written Part

1. Write and explain each of the seven purposes of standard costs.

2. Write three fundamental activities in a standard cost system.

3. Define and describe the flexible budgeting process.

4. Write three characteristics of a flexible budget.

5. List at least five basic concepts of Cost-Volume-Profit Analysis (CVPA).

6. Name three approaches to break-even analysis.

7. "Contribution margin is the excess of sales over fixed costs." Do you agree? Explain.

8. What is meant by a product's CM-ratio?

Sagot :

GinnyAnsweridn

Final answer:

Explains seven purposes of standard costs, fundamental activities in a standard cost system, and the flexible budgeting process.


Explanation:

Seven Purposes of Standard Costs:

  1. Cost Control: Standard costs provide a benchmark to monitor and control costs.
  2. Performance Evaluation: They help assess individual and departmental performance.
  3. Inventory Valuation: Standard costs aid in valuing ending inventories.

Fundamental Activities in a Standard Cost System:

  1. Setting Standards: Establishing predetermined cost levels.
  2. Recording Variances: Analyzing differences between standard and actual costs.
  3. Performance Reporting: Communicating performance results.

Flexible Budgeting Process:

Flexible budgeting adjusts budgets based on actual activity, allowing for better performance evaluation.


Learn more about Standard Costs, Flexible Budgeting, Cost Analysis here:

https://brainly.com/question/34638438


Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Find clear and concise answers at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.