All of the following are advantages of using standard costs and variances except
A)standard costs have benchmarks managers use to judge actual costs.
B)standard costs and benchmarks are useful tools that mangers use as a basis in the master budget.
C)the timeliness that occurs when variances are computed once each month.
D)standard costing systems simplify the bookkeeping process.

Question

Quizplus · Accepted Answer

Standard costs and variances are typically used for continuous monitoring and improvement, not just for monthly reports. The timeliness referred to in option C is not an advantage since more frequent analysis (e.g., daily or weekly) could provide more immediate feedback for corrective actions.

All of the Following Are Advantages of Using Standard Costs