One Drawback of Using Standard Costing Is That It Is

question 100

Multiple Choice

One drawback of using standard costing is that it is

• A) expensive to use.
• B) difficult to implement.
• C) often inaccurate.
• D) not applicable to most manufacturing systems.

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Definitions:

Business Operations

Business operations encompass the day-to-day activities a company engages in to run and achieve its objectives, including production, marketing, and management.

Principal

The original sum of money invested or loaned, before interest.

Agents

Individuals or entities authorized to act on behalf of another, typically in business transactions.

Agency Relationship

A legal relationship in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions with third parties.