For improved financial control, a standard cost system should be designed to generate and report cost and revenue variances:
A) Coincidental with regular financial-reporting intervals.
B) As soon as possible.
C) Only when significant in amount.
D) Only when negative in impact.
E) Only when requested by decision-makers/managers.

Question

Quizplus · Accepted Answer

The standard cost system should generate and report cost and revenue variances as soon as possible so that corrective actions can be taken promptly. Delayed reporting can result in the continuation of ineffective processes and practices, leading to further losses. Therefore, it is important to have timely and accurate information to make informed decisions.

For Improved Financial Control, a Standard Cost System Should Be