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:

Na2Cr2O7

Sodium dichromate is an inorganic compound consisting of sodium, chromium, and oxygen, used as an oxidizing agent in various chemical reactions, including those in organic chemistry.

Fatty Acid

A type of carboxylic acid that is often found in lipids, characterized by a long hydrocarbon chain which can be saturated or unsaturated.

Wax

A class of chemical compounds that are malleable at ambient temperatures and typically melt upon heating, often of natural or synthetic origin.

Stressor Defense

Strategies or mechanisms adopted by an individual or system to protect against stress or stress-induced conditions.