Standard cost systems can enhance operational control through the use of
A)price variances, which indicate the need for enhanced spending control.
B)efficiency variances, which indicate the need for corrective action.
C)standard costs, which indicate the desired cost of a unit of input.
D)actual costs, which indicate the price received for units sold.

Question

Quizplus · Accepted Answer

Efficiency variances indicate the need for corrective action because they measure the difference between the actual input used and the standard input that should have been used.

Standard Cost Systems Can Enhance Operational Control Through the Use