Which of the following is not a reason as to why companies use standard costs?
A) To establish performance standards
B) To prepare the budget
C) To expand the role of the accounting department
D) To set the sales prices of their products and services

Question

Quizplus · Accepted Answer

Standard costs are primarily used by companies to establish benchmarks for performance, aid in budget preparation, and set sales prices. Expanding the role of the accounting department is not a direct reason for using standard costs.

Which of the Following Is Not a Reason as to Why