Which of the Following Is a Criticism of Standard Costing

question 97

Multiple Choice

Which of the following is a criticism of standard costing, as applied to today's manufacturing environment?

• A) Standards tend to be relevant for only a short period of time because of shorter product life cycles.
• B) Variance information is usually aggregated (i.e., combined) rather than associated with a particular batch of goods or a specific product line.
• C) Traditional standard costing has a fairly narrow orientation, failing to focus on broader issues such as the overall costs of ownership.
• D) Standard costing pays considerable attention to labor cost and labor efficiency, which are becoming a relatively unimportant factor of production.
• E) All of the answers are correct.

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