What results from implementing standard cost systems in manufacturing environments that emphasize continuous improvement and just-in-time manufacturing and purchasing?
A) The standard cost system enhances the operational control.
B) The operational level will benefit from the detailed computation of variances.
C) Variances can be computed and presented in reports to higher-level managers.
D) The materials price variance may encourage the purchasing department to buy in smaller quantities to reduce inventories.

Question

Quizplus · Accepted Answer

In environments emphasizing continuous improvement and just-in-time practices, standard cost systems are often used to compute variances that are reported to higher-level managers for strategic decision-making rather than operational control.

What Results from Implementing Standard Cost Systems in Manufacturing Environments