Which of the following is not an advantage of using a standard cost system?
A)It eliminates the need for analysis of variances.
B)It facilitates establishing an effective system of responsibility accounting.
C)It requires an analysis of all aspects of operations.
D)It helps management control costs.

Question

Quizplus · Accepted Answer

A standard cost system requires an analysis of variances, rather than eliminating the need for it. This analysis helps identify areas of operations where costs can be controlled and improved. Therefore, A is the correct answer as it is not an advantage, but rather a requirement of the system.

Which of the Following Is Not an Advantage of Using