Which of the Following Is Not a Reason Standard Costs

question 27

Multiple Choice

Which of the following is not a reason standard costs are separated in two components?

• A) the price and quantity variances need to be identified separately to correct the actual major differences.
• B) identifying variances determines which manager must find a solution to major discrepancies.
• C) if a negative variance is over-shadowed by a favorable variance, managers may overlook potential corrections.
• D) variances brings attention to discrepancies in the budget and requires managers to revise budgets closer to actual.

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Definitions:

Vertical Transfer

The process by which knowledge, skills, and behaviors learned in training are applied to different levels of tasks or responsibilities within an organization.

Horizontal Transfer

The application of skills and knowledge learned in one area to another within the same level of an organization, promoting versatility and adaptability.

Far Transfer

The application of knowledge or skills learned in one context to a completely different context or situation.

Customer Satisfaction

A measure of how products or services meet or exceed customer expectations, crucial for business success.