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.

---

Definitions:

Fixed Costs

Expenses that do not vary with production volume, such as rent, salaries, and equipment leases.

Variable Costs

Costs that vary directly with the level of production or activity, such as materials and labor, in contrast to fixed costs.

Site Level

Refers to the specific location and its attributes within a larger geographic or organizational context, often considered in planning and development decisions.

Exchange Rates

The worth of one currency in terms of another for conversion purposes, showing the amount of one currency that can be swapped for a different one.