Which of the Following Is Not a Reason Standard Costs

question 142

Multiple Choice

Which of the following is not a reason standard costs are separated into two components?

• A) The price and quantity variances need to be identified separately to correct the actual major differences.
• B) Identifying variances determines which manager must find a solution to major discrepancies.
• C) If a negative variance is overshadowed by a favorable variance, managers may overlook potential corrections.
• D) Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results.

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Definitions:

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