How many of these are considered to be benefits of standard costing?
$\bullet$ It makes employees more aware of the impact of costs on operations
$\bullet$ It serves as a target against which to evaluate performance
$\bullet$ It is a cheap way of valuing inventory
$\bullet$ It eliminates the need to compute variances

Question

How many of these are considered to be benefits of standard costing?
$\bullet$ It makes employees more aware of the impact of costs on operations
$\bullet$ It serves as a target against which to evaluate performance
$\bullet$ It is a cheap way of valuing inventory 
$\bullet$ It eliminates the need to compute variances

Quizplus · Accepted Answer

Out of the four given statements, only three are considered to be benefits of standard costing. These include making employees more aware of the impact of costs on operations, serving as a target against which to evaluate performance, and being a cheap way of valuing inventory. The statement "it eliminates the need to compute variances" is not a benefit of standard costing, rather it is a characteristic of using actual costing instead of standard costing. Therefore, the correct answer is C)Three.

How Many of These Are Considered to Be Benefits of Standard