Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?

Accounting Writing Assignment : Unit 4

Course : Introduction to Accounting

Chapters : 12-15

Text Book : Survey of Accounting
8th Edition, 2018
ISBN (U.S.): 9781305961883 Author(s): Carl S. Warren
Publisher: Cengage

BAM 110 Study Guide

Choose a question below. You only need to select one question from the list below:

1. How do computerized budgeting systems aid firms in the budgeting process?

2. Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?

3. Discuss the principal limitations of the cash payback method for evaluating capital investment proposals.

-Use a standard essay response to all questions (i.e. four to five paragraphs with three to five sentences per paragraph, including an introduction, middle paragraphs, and conclusion).