Which of the Following Is a Disadvantage of Adopting a Standard

question 22

Multiple Choice

Which of the following is a disadvantage of adopting a standard costing system?

• A) to improve planning and control
• B) to facilitate product costing and pricing
• C) to help establish the quality and safety of products
• D) All of the above are advantages.

---

Definitions:

Prepaid Insurance

An asset account representing payments made for insurance coverage before the coverage period.

Accrued Salaries

Salaries that have been incurred but not yet paid; an expense that represents the amount of salary earned by employees but not disbursed by the end of the accounting period.

Unearned Rent

Income received for renting out property that has not yet been earned because the rental period has not occurred.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the wear and tear, decay, or decline in value of the asset due to use and passage of time.