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:

Strong Axiom

A stringent condition in economics that, when applied, implies a level of consistency in consumer choice behavior beyond what is required by weaker axioms.

Revealed Preference

A theory suggesting consumers' preferences can be inferred from their purchasing habits.

Prices

Monetary values assigned to goods and services in a market, determining how resources are allocated among consumers and producers.

Weak Axiom

A less stringent rule or principle that is accepted as valid, often used in economic theories to make assumptions about consumer behavior.