Which of the Following Is a Criticism of Standard Costing

question 29

Multiple Choice

Which of the following is a criticism of standard costing, as applied to today's manufacturing environment?

• A) Standards tend to be relevant for only a short period of time because of shorter product life cycles.
• B) Variance information is usually aggregated (i.e., combined) rather than associated with a particular batch of goods or a specific product line.
• C) Traditional standard costing has a fairly narrow orientation, failing to focus on broader issues such as the overall costs of ownership.
• D) Standard costing pays considerable attention to labor cost and labor efficiency, which are becoming a relatively unimportant factor of production.
• E) All of the other answers are correct.

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Definitions:

Fight Against Colonization

Efforts or movements dedicated to resisting and ultimately ending the control or occupation by colonial powers, seeking self-determination and independence for colonized territories.

Indians

People native to or citizens of India; also used historically to refer to Native Americans due to Columbus’s initial misidentification.

Colonization

The process by which a country establishes control over a foreign territory, subjecting it to its rule and often settling it with its own populace, impacting the indigenous culture and society.

Land Ownership

The legal or rightful ownership of land, involving the rights to use, control, and transfer land as property.