Managers generally find the interpretation of variances to be straightforward

Question

Quizplus · Accepted Answer

While standard costs can provide useful benchmarking and cost control information, they can also be subject to errors and may not accurately reflect the actual costs incurred. Additionally, variances between standard costs and actual costs may be difficult to interpret and may require further analysis. Therefore, the use of standard costs should be carefully evaluated and monitored.

Managers Generally Find the Interpretation of Variances to Be Straightforward