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:

Goals Against Average

A statistical measure used in sports, particularly hockey, to quantify the average number of goals a goalie allows per game.

Goalie

A player in sports, particularly in hockey or soccer, responsible for protecting the goal from being scored by the opposing team.

Shutout

In finance, it typically means being prevented from participating in an opportunity, often due to timing or fulfillment conditions not being met.

Monthly Base Salary

The fixed amount of money paid to an employee every month, excluding bonuses, benefits, or overtime.