Standard costs:
A) allow a manager to assess the efficiency of operations.
B) allow a company to practice management by exception.
C) provide management with a basis for performance evaluations.
D) if set correctly, can provide a motivational tool for employees.
E) All of the answers are correct.

Question

Quizplus · Accepted Answer

Standard costs serve multiple purposes in management accounting: they help in assessing operational efficiency, enable management by exception by highlighting variances, form a basis for evaluating performance, and can motivate employees when set at achievable levels.

Standard Costs