Which of the Following Is an Advantages of Using Standard

question 158

Multiple Choice

Which of the following is an advantages of using standard costs and variances?

• A)Standard costs are benchmarks that managers use to judge actual costs.
• B)Maintaining updated standards is inexpensive.
• C)The timeliness that occurs when computing standards monthly.
• D)Price and efficiency variances motivate front-line employees more than operational performance measures.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.

Stockholders' Equity

The residual interest in the assets of the corporation after deducting its liabilities, representing ownership interest.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Fair Value

An estimate of the price at which an asset or liability would be traded in a fair transaction between willing participants in the market.