Which of the following is not a problem associated with standard cost accounting?
A)Standard costing discourages management from producing large batches of products and build inventory.
B)Applying standard costing leads to product cost distortions in a lean environment.
C)Standard cost data are associated with excessive time lags that reduce its usefulness.
D)The financial orientation of standard costing may promote bad decisions.

Question

Quizplus · Accepted Answer

Standard costing actually encourages producing large batches and building inventory, which may not be beneficial in a lean environment. The other options are issues associated with standard cost accounting.

Which of the Following Is Not a Problem Associated with Standard