Which of the following conditions normally would not indicate that standard costs should be revised?
A) The engineering department has revised product specifications in responding to customer suggestions.
B) The company has signed a new union contract that increases the factory wages on average by $3.50 an hour.
C) Actual costs differed from standard costs for the preceding week.
D) The average price of raw materials increased from $4.68 per pound to $4.82 per pound.

Question

Quizplus · Accepted Answer

Actual costs differing from standard costs for the preceding week is a normal occurrence and does not necessarily indicate a need to revise standard costs. The other options either suggest changes in the cost of production or changes in product specifications, which may require a revision of standard costs.

Which of the Following Conditions Normally Would Not Indicate That