Distinguish between an ideal standard and a normal standard

Question

1. Standard costs facilitate management planning. What are the other advantages of standard costs?

2 Contrast the roles of the management accountant and management in setting standard costs.

3. Distinguish between an ideal standard and a normal standard.

4. What factors should be considered in setting (a) the direct materials price standard and (b) the direct materials quantity standard?

5. "The objective in setting the direct labor quantity standard is to determine the aggregate time required to make one unit of product." Do you agree? What allowances should be made in setting this standard?

Answer 1

The following assignment which illustrate to management planning and management accountant 1. Standard costs assist management planning. What are the other benefits of standard costs? 2 Distinguish the roles of the management accountant and management in setting standard costs. 3. Evaluate between an ideal standard and a normal standard. 4. What features must be considered in setting (a) the direct materials price standard and (b) the direct substances quantity standard? 5. "The objective in setting the direct labor quantity standard is to find out the aggregate time needed to make one unit of product." Do you agree? What allowances must be made in setting this standard?