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?
