1. How does a standard cost accounting system work, and why is it valuable to management
2. What is the difference between the standard cost and the actual cost of production?
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3. What is a “standard”? Give some examples such as those appearing in the chapter introduction.
4. How are standards for materials and labor costs determined?
5. What is a variance?
6. Is a favorable variance “good” and an unfavorable variance “bad”? Explain.
7. When are variances usually recorded in the general journal?
8. Are actual costs or standard costs charged to Work in Process in a standard cost system?
9. What two factors must be considered when breaking down a variance into its components?