Standard cost systems facilitate the management practice known as:
A) Management by the numbers.
B) Management development.
C) Managing by exception.
D) Just-in-time management.

Question

Quizplus · Accepted Answer

Standard cost systems provide a basis for comparison between actual costs and expected (standard) costs. This enables managers to identify significant variances or exceptions and take appropriate action to address them. Managing by exception involves focusing on areas that deviate significantly from expectations and taking corrective action as needed. Therefore, standard cost systems facilitate managing by exception.

Standard Cost Systems Facilitate the Management Practice Known As