Are standard costs established by the IMA?

Are standard costs established by the IMA?

Standard costs are: Actual costs incurred to produce a specific product or perform a service. Preset costs for delivering a product or service under normal conditions. Established by the IMA.

When standard costs are used factory overhead is assigned?

When standard costs are used, factory overhead is assigned to products with a predetermined standard overhead rate. Companies promoting continuous improvement strive to achieve practical standards rather than ideal standards. A cost variance is the difference between actual cost and standard cost.

Which department is often responsible for the direct materials price variance quizlet?

accounting department

Which department is usually responsible for a direct materials cost variance due to?

Purchasing department is responsible to place orders for direct materials so this variance is generally considered the responsibility of purchase manager.

Which of the following is a benefit derived from budgeting?

Which of the following is a benefit derived from budgeting? Budgeting focuses management’s attention on the future. Budgeting provides coordination of departments. Budgeting provides a basis for evaluating performance.

Which of the following is a benefit derived from budgeting chegg?

Budgeting avoids needing industry and economic factors in decision making. Budgeting provides a basis for evaluating performance. Budgeting avoids the need for incentives to improve employee performance. Budgeting eliminates the need for coordination across departments.

When preparing the cash budget all of the following should be considered except?

When preparing the cash budget, all the following should be considered except: Depreciation expense.

What is the usual budget period for most companies?

quarterly

What is the usual starting point for a master budget?

sales budget

Which of the following budgets is not a budget that a manufacturer?

Which of the following budgets is not a budget that a manufacturer would include in its master budget? Merchandise purchases budget.

Which of the following budget is not an operating budget?

Production budget. Which of the following budgets is not an operating budget? Sales budget.

Which of the following must be prepared before the direct labor budget?

Which of the following must be prepared before the direct labor budget? Budgeted income statement.

What is the process of planning future business actions and expressing them as a formal plan?

Managers prepare budgets and spending propositions based on past production activities. Accounting report that presents predicted amounts of the company’s revenues and expenses for the budget period. Budgeting. Process of planning future business actions and expressing them as formal plans.

Which of the following is a major component of a master budget?

The major components of a master budget include income and expenses, overhead and production costs, and the monthly, annual, average and projection totals.

What are the two main components of the master budget?

The two main parts are the operational budget and the financial budget. There is a specific order of completion when preparing a master budget.

What are the 5 main components of an operating budget?

Components of an Operating Budget for a Small Business

• Sales Budget.
• Production Budget.
• Direct Materials Purchases Budget.
• Direct Labor Budget.
• Overhead Budget.
• Selling and Administrative Expenses Budget.
• Ending Finished Goods Inventory Budget.
• The Bottom Line.

What are the types of operating budget?

The most common types of operating budgets are expense, revenue, and profit budgets. An expense budget is an operating budget that documents expected expenses during the budget period.

What are the basis of budget items?

The Essential Budget Categories

• Housing (25-35 percent)
• Transportation (10-15 percent)
• Food (10-15 percent)
• Utilities (5-10 percent)
• Insurance (10-25 percent)
• Medical & Healthcare (5-10 percent)
• Saving, Investing, & Debt Payments (10-20 percent)
• Personal Spending (5-10 percent)

How do I categorize my expenses?

Here’s how to categorize your small business expenses:

1. Decide on the right categories for your specific business expenses.
2. Review and reconcile your bank accounts on a regular basis.
3. Each time you spend money, determine what you’re spending it on.
4. Assign that transaction to a category.

What are some examples of household expenses?

In addition to the cost of the housing, whether it is rent, a mortgage payment, or real estate taxes, fees for utilities such as electricity and gas as well as insurance for the property are also part of household expenses. The needs of each person accounted for in the household also fall under these costs.

Is gas a fixed expense?

Gas is a non-fixed expense that most working people can’t do without.