Which of the following is true regarding standard cost systems in manufacturing environments that emphasize continuous improvement and just-in-time manufacturing and purchasing?
A) The standard cost system enhances the operational control.
B) The materials price variance may encourage the purchasing department to buy in smaller quantities to reduce inventories.
C) Variances can be computed and presented in reports to higher-level managers.
D) The operational level will benefit from the detailed computation of variances.
E) None of these.

Question

Quizplus · Accepted Answer

Although the benefits of operational control may not extend to these manufacturing environments, variances can still be computed and presented in reports to higher-level managers so they can monitor the financial dimension.

Which of the Following Is True Regarding Standard Cost Systems