The aggregate nature of the vari ances in standard costing is a drawback in the advanced manufacturing setting that makes it diﬃcult for man agers to determine their cause.

Question

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In an advanced manufacturing setting, where there are multiple product lines and different production processes, the aggregate nature of the variances in standard costing can make it difficult for managers to pinpoint the cause of the variances. This can hinder their ability to make informed decisions and take corrective actions.

The Aggregate Nature of the Vari Ances in Standard Costing