Question

QUESTION 28 Which of the following is a disadvantage of using standard costs? a. It doesn't...

QUESTION 28

  1. Which of the following is a disadvantage of using standard costs?

    a.

    It doesn't assist in responsibility accounting.
    b.

    Favorable variances are not always favorable.
    c.

    None of the given choices are disadvantages of using standard costs.
    d.

    Reasonable standards can be benchmarks for employees.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: Favorable variances are not always favorable.

Explanation:

Favorable variance are not the indicator of the efficiency of work.Standard costing generally consider the quantitative data which is not the absolute measurement of performance that why sometimes even favorable variance not reflect the correct information.

Considering the other option;

Option a: Standard costing assist in responsibility accounting as every responsibility centre's have the standard cost which they need to meet.

Option d. Standard cost sets the standards which means a benchmark which need to be achieved by the employees.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is a problem that could be encountered when using standard costs? a....
Which of the following is a problem that could be encountered when using standard costs? a. Efficiency could be enhanced by permitting a management-by-exception approach. b. Standard costs help facilitate responsibility accounting. c. Focusing solely on standards may impede an organization’s efforts toward continuous improvement. d. Standard costs can simplify an organization’s bookkeeping process.
which of the following is not a disadvantage of using variable costing as opposed to absorption...
which of the following is not a disadvantage of using variable costing as opposed to absorption costing A) Variable accounting records do not conform to GAAP so two sets of records must be maintained of the company is required to file their statements publicly B) owners equity tends to be understated C) accounting records are more costly to maintain D) only variable costs are assigned to inventory making poor management decisions E) none of the above are disadvantages
The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of...
The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.72 per hour Variable overhead 3 hours per unit @ $2.06 per hour Actual Costs     Total variable cost, $18,000     Total fixed cost, $7,900 The fixed factory overhead volume variance is a.$720 unfavorable b.$0 c.$576 unfavorable d.$576 favorable The following data are given for Bahia Company: Budgeted...
which of the following is a disadvantage of using variable costing? A) two sets of accounting...
which of the following is a disadvantage of using variable costing? A) two sets of accounting records must be maintained B) inventory values tend to be overstated C) CVP relationships are more difficult to determine than under absorption costing D) per customer or per product contribution margin is obscured E) all of the above
Which of the following is a disadvantage of using the comparable-multiple method to value a firm?...
Which of the following is a disadvantage of using the comparable-multiple method to value a firm? A) It reflects what the market is willing to pay for a comparable firm or a set of comparable firms. B) It does not take long-term profitability and growth into consideration. C) It can be used when the firm is not in steady state. D) It is simple and convenient to use.
QUESTION 26 Which of the following is an example of a physical resource? restructuring efforts strategies...
QUESTION 26 Which of the following is an example of a physical resource? restructuring efforts strategies experience of top managers None of the above 1 points    QUESTION 27 Which of the following is an example of an organizational resource? experience strategies employee knowledge & skills None of the above 1 points    QUESTION 28 Which of the following is not a category of firm resources? organizational resources physical resources human resources All of the above are categories of firm...
Choice question: Which of the following best describes critical theorists’ views on disclosure of social responsibility...
Choice question: Which of the following best describes critical theorists’ views on disclosure of social responsibility information? Corporate social reporting may be beneficial because it gives the impression of concern and change but in fact, will do no more than allow the system to “capture” the radical elements of, for example, socialism, environmentalism or feminism and thus emasculate them. The disclosure of corporate social responsibility information acts to legitimise, and challenge, those providing the information. Greater disclosure of social responsibility...
Orion Corporation has established the following standards for the prime costs of one unit of its...
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Standard Quantity Standard Quantity Standard Price or Rate Standard Cost Direct material Direct Material 6 pounds $1.1 per pound $6.60 Direct Labor .3 $6.00 $1.8 During June, Orion purchased 227,000 pounds of direct material at a total cost of $274,670. The total wages for June were $72,576, 75 percent of which were for direct labor. Orion manufactured 36,000 dartboards during June,...
Which of the following statements is true about direct costs? a. A direct cost is a...
Which of the following statements is true about direct costs? a. A direct cost is a cost that can easily and conveniently be traced to a specified cost object. b. A direct cost is allocated to different cost objects. c. A direct cost is a cost that cannot be easily traced to a specified cost object. d. Manufacturing overhead is included as a direct cost. QUESTION 4 Doors, Inc. produced 25,000 units last year.  The following information was provided: Direct materials...
Which of the following statements is correct? A. Agency costs can be minimized by separating decision...
Which of the following statements is correct? A. Agency costs can be minimized by separating decision management from decision control. B. Specific internal accounting procedures, such as standard costs, aid in decision management. C. For decision management, most managers prefer accounting numbers. D. Departments and companies with lower stock turns are using their capital more efficiently by limiting the number of times inventory is replaced during the period. E. All of the choices are correct. Economic value added (EVA): A....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT