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:

Market Risk Premium

The extra profit an investor is aiming for by choosing to invest in a market portfolio that carries risk instead of opting for assets devoid of any risk.

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.

Treasury Bill

A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.