Which of the Following Is Not a Problem Associated with Standard

question 46

Multiple Choice

Which of the following is not a problem associated with standard cost accounting?

• A)Standard costing discourages management from producing large batches of products and build inventory.
• B)Applying standard costing leads to product cost distortions in a lean environment.
• C)Standard cost data are associated with excessive time lags that reduce its usefulness.
• D)The financial orientation of standard costing may promote bad decisions.

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Definitions:

Linear Association

A relationship between two variables where a change in one variable is associated with a proportional change in the other variable.

Covariance

A measure of linear association between two variables. Positive values indicate a positive relationship; negative values indicate a negative relationship.

Variables

Elements, features, or factors that are capable of changing or varying across different conditions or within different individuals in a study.

Population Standard Deviation

A measure of the dispersion of a dataset relative to its mean, calculated for the entire population.