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 $2.00 an hour.
C)Actual costs differed from standard costs for the preceding week.
D)The world price of raw materials increased.

Question

Quizplus · Accepted Answer

Actual costs differing from standard costs for the preceding week may indicate a need to revise standard costs, but the other conditions listed would likely require a revision of standard costs. Product specification changes may affect the materials and labor needed for production, a new union contract may result in increased labor costs, and changes in world prices may affect the cost of raw materials.

Which of the Following Conditions Normally Would Not Indicate That