Which of the Following Is Not a Problem Associated with Standard

question 56

Multiple Choice

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

• A) Standard costing motivates management to produce 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.
• E) All of the above are problems with standard costing.