If standard cost reports emphasize meeting predetermined standards
A)there should be non-financial performance measures available to management to supplement the cost reports.
B)management can control the department properly with standard cost reports.
C)the budget process should be sufficient to support management's performance.
D)all members of the team will be able to properly identify critical variance issues.

Question

Quizplus · Accepted Answer

Standard cost reports only show if actual costs are higher or lower than the predetermined standards. To truly evaluate performance, non-financial performance measures should also be considered. This will give management a more well-rounded view of departmental performance.

If Standard Cost Reports Emphasize Meeting Predetermined Standards