Using standard costs
A) can make management planning more difficult.
B) promotes greater economy.
C) does not help in setting prices.
D) weakens management control.

Question

Quizplus · Accepted Answer

Standard costs provide a benchmark for evaluating actual costs and promote greater economy by highlighting variances that require management's attention. While it may make management planning more challenging, it can strengthen management control by identifying areas for improvement. However, using standard costs alone may not be sufficient in determining prices, as market conditions also need to be considered.

Using Standard Costs