Which of the following statements relating to standard costs is false?
A) Standard costs result in more stable product costs.
B) Standard costs enable management to concentrate on significant variances.
C) Standard costs provide a valid basis for cost comparisons.
D) Standard costs cannot be used for external reporting.

Question

Quizplus · Accepted Answer

Standard costs can be used for internal management purposes and performance evaluation but not for external financial reporting as they do not reflect the actual costs incurred. External reporting requires reporting actual costs.

Which of the Following Statements Relating to Standard Costs Is