A standard cost system should be designed to generate and report variances:
A)Coincidental with regular reporting intervals.
B)As soon as possible.
C)Only when significant in amount.
D)Only when negative in impact.
E)Only when requested by decision-makers.

Question

Quizplus · Accepted Answer

Variances should be reported as soon as possible to allow for prompt investigation and corrective action. Delayed reporting may result in lost opportunities to improve operations and profitability.

A Standard Cost System Should Be Designed to Generate and Report