All of the Following Are Advantages of Using Standard Costs

question 103

Multiple Choice

All of the following are advantages of using standard costs except

• A)managers can evaluate the efficiency of production workers.
• B)differences between the static budget and the flexible budget can be broken down into price and quantity components.
• C)consumer motivation for purchases can be analyzed.
• D)standard costing allows companies to create flexible budgets.

---

Definitions:

IFRS

A global set of accounting principles called International Financial Reporting Standards, formulated by the International Accounting Standards Board (IASB) to steer the compilation of financial statements worldwide.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholder equity at a specific point in time.

Statement of Financial Position

Another term for the balance sheet, emphasizing its role in showing the financial status of an entity at a point in time.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.