Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
When recording journal entries for production costs using a standard cost accounting system, the favorable variances are recorded as credit and the unfavorable variances are recorded as debit.
Due to the fact that manufacturers are unable to estimate exact costs in advance, standard costing is the technique of estimating costs during the production process. This methodology is used by manufacturers to forecast future costs for a variety of factors, including labour, materials, production, and overhead.
The production team uses this information to estimate anticipated expenses and create budgets and plans accordingly. The terms projected cost, predetermined cost, expected cost, and budgeted cost are all used to describe standard costs. Even before the production process is finished, standard costing aids manufacturers in setting the prices of the finished goods.
To know more about Standards cost visit:
https://brainly.com/question/17156505
#SPJ4
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.