Which of the Following Is Not an Advantage of Standard

question 17

Multiple Choice

Which of the following is not an advantage of standard costing?

• A) Standard costing provides a basis for sensible cost comparisons.
• B) Standard costing provides a means of performance evaluation.
• C) Standard costing can be a motivational tool for employees.
• D) Once standards have been set, they need not be revised, resulting in a more efficient accounting department.

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Definitions:

Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, including info about the target market, competitors, and customers, to inform business decisions.

Durable Good

A type of good that does not quickly wear out and is therefore used over a longer period, such as appliances, vehicles, and furniture.

Cab Ride

A trip or service provided by a taxi or cab, often charged based on distance and time.

Services Sector

The segment of the economy that involves offering intangible products such as healthcare, education, and financial services.