Which of the Following Statements Is Not True About the Use

question 97

Multiple Choice

Which of the following statements is not true about the use of a standard cost system?

• A) Standards can be used by individuals to judge their own performance.
• B) As long as costs do not fall significantly outside of standards managers can usually focus on other issues.
• C) The use of standard costs can greatly simplify bookkeeping.
• D) A favourable variance will always be good thing for a business.

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Definitions:

Interdependence

A dynamic of being mutually reliant on each other, where the actions of one entity or person affect the outcome of another.

Cohesiveness

The degree to which members of a group or team are united and work together to achieve a common goal.

Person Perception

The process of forming impressions and making judgments about the characteristics and motives of others.

Activated Automatically

Processes or responses that occur without conscious control or effort.