Disadvantages of using standard costs and variances include all of the following except
A)the excessive cost to keep standards up-to-date.
B)companies that pay employees a salary because direct labor is a fixed cost rather than a variable cost.
C)those manufacturing costs that enter Work in Process Inventory are recorded at standard cost, rather than actual cost.
D)traditional standards can promote unfavorable employee behavior.

Question

Quizplus · Accepted Answer

Standard costs being recorded in Work in Process Inventory is a normal practice and not a disadvantage.

Disadvantages of Using Standard Costs and Variances Include All of the Following