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:

Combustion Chamber

The enclosed space within an engine where fuel is burned to produce power.

Oil Pressure

A measure of the force per unit area exerted by oil circulating in the lubrication system of an engine.

Engine Repairs

Refers to the diagnosis and fixing of problems within an engine to restore its proper operating condition.

Valve Lash Adjustment

The process of setting the clearance between the valves and their respective lifters in an engine to ensure proper operation.