Which of the following is an advantages of using standard costs and variances?
A)Standard costs are benchmarks that managers use to judge actual costs.
B)Maintaining updated standards is inexpensive.
C)The timeliness that occurs when computing standards monthly.
D)Price and efficiency variances motivate front-line employees more than operational performance measures.

Question

Quizplus · Accepted Answer

Standard costs provide a benchmark to compare actual costs against, allowing managers to identify areas where performance can be improved. They also provide a basis for evaluating the effectiveness of cost control measures and can help in planning and decision-making. Additionally, they can facilitate communication and coordination between departments and aid in the development of performance targets for employees.

Which of the Following Is an Advantages of Using Standard