1. Discuss the difference between budgets and standard costs.
2. Describe the relationship that unit standards have with flexible budgeting.
3. What is the quantity decision? The pricing decision?
4. Why is historical experience often a poor basis for establishing standards?
5. Should standards be set by engineering studies? Why or why not?
6. What are ideal standards? Currently attainable standards? Of the two, which is usually adopted? Why?
7. Explain why standard costing systems are adopted.
8. How does standard costing improve the control function?
9. Discuss the differences among actual costing, normal costing, and standard costing.
10. What is the purpose of a standard cost sheet?