Which of the Following Is True Regarding Standard Cost Systems

question 153

Multiple Choice

Which of the following is true regarding standard cost systems in manufacturing environments that emphasize continuous improvement and just-in-time manufacturing and purchasing?

• A) The standard cost system enhances the operational control.
• B) The materials price variance may encourage the purchasing department to buy in smaller quantities to reduce inventories.
• C) Variances can be computed and presented in reports to higher-level managers.
• D) The operational level will benefit from the detailed computation of variances.
• E) None of these.

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Definitions:

Sociocultural

Relating to the combined social and cultural factors that influence an individual's behavior and attitudes.

Interpersonal

Relating to relationships or communication between people.

Psychoanalytic

Pertaining to a theory of mental illness and therapy developed by Sigmund Freud that emphasizes unconscious psychological processes and stresses the importance of childhood experiences.

Cognitive-Behavioral Therapist

A mental health professional specializing in cognitive-behavioral therapy (CBT), which focuses on changing negative thought patterns to improve behavior and emotional regulation.