A continuous improvement budgeted cost, in terms of variances and standard costs
A) is held constant regardless of external factors, thus enabling management to isolate internal variance factors.
B) is successively reduced over succeeding time periods.
C) ensures that managers will avoid unfavourable materials (or labour) variances that are due to external factors.
D) is easier to achieve for older, more established production runs, than for new products.
E) is achieved as easily for older, more established production runs, as for for new products.

Question

Quizplus · Accepted Answer

DB) A continuous improvement budgeted cost involves progressively reducing the budgeted costs over time to encourage efficiency and cost reduction. D) It is generally easier to achieve continuous improvement for older, more established production runs because the processes and costs are better understood and more predictable, allowing for more accurate identification of improvement opportunities.

A Continuous Improvement Budgeted Cost, in Terms of Variances and Standard