Manufacturing companies using a standard cost system often can achieve more effective control when factory overhead variance analysis is done with:
A) A two-variance approach.
B) A three-variance approach.
C) A four-variance approach.
D) A single cost driver.
E) Multiple cost drivers.

Question

Quizplus · Accepted Answer

Using multiple cost drivers allows for a more detailed and accurate analysis of factory overhead variances, leading to more effective control and decision-making.

Manufacturing Companies Using a Standard Cost System Often Can Achieve