Which of the Following Is a Criticism of Standard Costing,as

question 73

Multiple Choice

Which of the following is a criticism of standard costing,as applied to today's manufacturing environment?

• A)Standards tend to be relevant for only a short period of time because of shorter product life cycles.
• B)Variance information is usually aggregated (i.e. ,combined)rather than associated with a particular batch of goods or a specific product line.
• C)Traditional standard costing has a fairly narrow orientation,failing to focus on broader issues such as the overall costs of ownership.
• D)Standard costing pays considerable attention to labor cost and labor efficiency,which are becoming a relatively unimportant factor of production.
• E)All of these are valid criticisms.

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Definitions:

Managerial Control

The authority and processes through which managers direct and organize resources, activities, and people to achieve organizational goals.

Job Classifications

A system of categorizing and organizing jobs based on duties, responsibilities, and often, compensation levels.

Management Practices

Encompasses the strategies, methods, and behaviors managers use to operate and guide organizations effectively towards their objectives.

Employee Input

The contribution of ideas, feedback, and suggestions by employees to their employers or managers to improve workplace practices or policies.