Which of the Following Statements About Standard Costs Is False

question 232

Multiple Choice

Which of the following statements about standard costs is false?

• A) Properly set standards should promote efficiency.
• B) Standard costs facilitate management planning.
• C) Standards should not be used in "management by exception."
• D) Standard costs can simplify the costing of inventories.

---

Definitions:

Domestic Producers

Companies or individuals that manufacture or produce goods within their own country, as opposed to importing them from abroad.

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that removed tariffs and facilitated trade between the member countries.

Mexico

A country located in the southern portion of North America, known for its rich cultural history, diverse landscapes, and robust economy.

Tariffs

Taxes imposed by a government on imported goods and services, which can affect trade balances, prices, and economic relationships between countries.