21 FORMAL ENTRY TENDS TO GIVE VARIANCES EVERY WORKSTATION IS ATTEMP...

10-21 Formal entry tends to give variances

every workstation is attempting to produce at

more emphasis than off-the-record computa-

capacity, then work in process inventory will

tions. And, the use of standard costs in the

build up in front of the workstations with the

journals simplifies the bookkeeping process by

least capacity.

allowing all inventories to be carried at standard,

rather than actual, cost.