Which of the Following Is Not a Reason Standard Costs

question 142

Multiple Choice

Which of the following is not a reason standard costs are separated into two components?

• A) The price and quantity variances need to be identified separately to correct the actual major differences.
• B) Identifying variances determines which manager must find a solution to major discrepancies.
• C) If a negative variance is overshadowed by a favorable variance, managers may overlook potential corrections.
• D) Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results.

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Definitions:

Deceit

An act of misleading or misrepresenting information to another party, often with the intent to induce them to part with something of value or to surrender a legal right.

Battery

A legal term for an act that intentionally causes harmful or offensive contact with another person's body.

Nuisance

A legal term denoting an act, condition, or thing unreasonably interfering with the use or enjoyment of land or property.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the damages caused.