An advantage of standard costing is that it gives visibility to the variances that arise in the production process.

Question

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Standard costing involves setting a predetermined cost for a product or service and then comparing actual costs to that standard. This comparison highlights any variances or deviations that may have occurred during the production process. By revealing these variances, managers can identify areas for improvement and take corrective action to reduce costs and improve efficiency. Hence, the given statement is true.

An Advantage of Standard Costing Is That It Gives Visibility