Which of the Following Is a Drawback of Using Standard

question 57

Multiple Choice

Which of the following is a drawback of using standard costing system?

• A)It can be expensive and time-consuming to implement.
• B)It distorts actual cost information.
• C)It is often inaccurate.
• D)It is applicable only to manufacturing businesses,not service businesses.

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Definitions:

Jointly Exhaustive

A set of propositions or events is considered jointly exhaustive if at least one of them must be true.

Organizational Scheme

A structured framework used to arrange information, resources, or entities in a logical or systematic order.

Referents

Objects, events, or concepts in the real world to which words, phrases, or symbols refer.

Level of Organization

Refers to the hierarchy in systems or structures, from simple to complex, like in biological organisms or social entities.