Which of the Following Statements Regarding Standard Cost Systems Is

question 179

Multiple Choice

Which of the following statements regarding standard cost systems is true?

• A)Favorable variances are not necessarily good variances.
• B)Managers will investigate all variances from standard.
• C)The production supervisor is generally responsible for material price variances.
• D)Standard costs cannot be used for planning purposes since costs normally change in the future.

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Definitions:

Factory

A large building or series of buildings where goods are manufactured or assembled chiefly by machine.

Adaptability

The ability to adjust to new conditions, changes, or environments effectively.

Cohesion

The act of forming a united whole, often used to describe the sense of unity and togetherness within a group or team.