Which of the Following Is Not an Advantage of Standard

question 95

Multiple Choice

Which of the following is not an advantage of standard costing over normal costing and actual costing?

• A) A greater capacity for control.
• B) Ability to easily distinguish the FIFO and weighted average methods of accounting for beginning inventory costs.
• C) Computing a unit cost for each equivalent unit cost category is not necessary.
• D) Providing for readily available unit cost information.
• E) All of these are advantages of standard costing.

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Definitions:

Herfindahl Index

A measure of market concentration used to evaluate the level of competition within an industry.

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.

Herfindahl Index

A measure of the concentration and competitiveness of an industry, calculated by summing the squares of the market shares of each firm within the industry.

Four-Firm Concentration Ratio

a measure of market concentration and competition among the four largest firms in an industry, expressed as a percentage of total market sales.