Match the following descriptions with the term a-e it describes:
-actual cost standard cost at actual volumes
A)Ideal standard
B)Nonfinancial performance measure
C)Currently attainable standard
D)Unfavorable cost variance
E)Favorable cost variance

Question

Match the following descriptions with the term a-e it describes:
-actual cost > standard cost at actual volumes
A)Ideal standard
B)Nonfinancial performance measure
C)Currently attainable standard
D)Unfavorable cost variance
E)Favorable cost variance

Quizplus · Accepted Answer

An unfavorable cost variance represents a situation where the actual cost is higher than the standard cost.

Answer: A
 An ideal standard is designed to reflect the optimum level of performance that should be achieved under perfect operating conditions.

Answer: C
 A currently attainable standard reflects the performance level that can be realistically achieved under existing conditions.

Answer: E
 A favorable cost variance represents a situation where the actual cost is less than the standard cost.

Answer: B
 A nonfinancial performance measure is a performance metric that is not directly linked to financial performance or results.

Match the Following Descriptions with the Term A-E It Describes