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.

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Definitions:

Compulsion

A psychological condition or mechanism where an individual feels the urgent need to perform certain behaviors or rituals repeatedly.

Obsession

Persistent, intrusive, and unwanted thoughts that cause significant anxiety or distress.

Ritualistic Behavior

Repetitive actions performed in a prescribed manner, often part of religious, cultural, or social practices, imbued with symbolic meaning.

Impulse

A sudden, involuntary urge to do something.