Which of the following statements is/are true?
A) Many service organisations cannot use standard costing because their services are non-repetitive.
B) Practical standards are also known as attainable standards.
C) Practical standards incorporate a certain amount of inefficiency, such as that caused by an occasional machine breakdown.
D) All of the given answers

Question

Quizplus · Accepted Answer

A) Many service organizations cannot use standard costing because their services are non-repetitive. This statement is true as standard costing requires standardization and many service organizations provide customized services that cannot be standardized.
B) Practical standards are also known as attainable standards. This statement is also true as practical standards are those standards that can be realistically achieved based on current and expected conditions.
C) Practical standards incorporate a certain amount of inefficiency, such as that caused by an occasional machine breakdown. This statement is true as practical standards are set to account for normal and expected inefficiencies and disruptions in the process.

Therefore, statement D, "All of the given answers" is true.

Which of the Following Statements Is/are True