All of the Following Are Advantages of Using Standard Costs

question 82

Multiple Choice

All of the following are advantages of using standard costs and variances except

• A)standard costs have benchmarks managers use to judge actual costs.
• B)standard costs and benchmarks are useful tools that mangers use as a basis in the master budget.
• C)the timeliness that occurs when variances are computed once each month.
• D)standard costing systems simplify the bookkeeping process.

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Definitions:

Profit-Maximizing Quantity

The production level where a firm reaches its maximum profit.

Monopoly Model

An economic model describing a market structure where a single seller controls the entire market supply, setting prices without competition.

Point

An exact location in space, defined by coordinates or a descriptor, but without any dimensions, area, volume, or length.

MR = MC

The condition where marginal revenue equals marginal cost, often used as the profit maximization point for firms in microeconomics.