Which of the Following Is True Regarding Standard Cost Systems

question 153

Multiple Choice

Which of the following is true regarding standard cost systems in manufacturing environments that emphasize continuous improvement and just-in-time manufacturing and purchasing?

• A) The standard cost system enhances the operational control.
• B) The materials price variance may encourage the purchasing department to buy in smaller quantities to reduce inventories.
• C) Variances can be computed and presented in reports to higher-level managers.
• D) The operational level will benefit from the detailed computation of variances.
• E) None of these.

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Definitions:

Nail Biting

A common nervous habit where an individual bites their fingernails or the surrounding skin, often a response to stress or anxiety.

Income

Income refers to the money that an individual or business receives in exchange for providing a good or service or through investing capital.

Height

A measurement of how tall a person or structure is, often considered in terms of physical growth, architectural dimensions, or geographical elevation.

Attractive

Having qualities or features that are appealing or pleasing to the senses or mind.