Why are standard cost systems adopted?
A) to collect additional information
B) to increase efficiency in a just-in-time environment
C) to improve planning and control, and to facilitate product costing
D) to enhance the operational control of firms that emphasize continuous improvement

Question

Quizplus · Accepted Answer

Standard cost systems are adopted to improve planning and control, and to facilitate product costing. They provide a basis for measuring actual costs, identifying variances, and analyzing the reasons for those variances. This information can then be used to make adjustments and improve future operations.

Why Are Standard Cost Systems Adopted