Which of the following conditions normally would not indicate that standard costs should be revised?
A) The engineering department has revised product specifications in responding to customer suggestions.
B) The company has signed a new union contract which increases the factory wages on average by $5.00 an hour.
C) Actual costs differed from standard costs for the preceding week.
D) The world price of raw materials increased.

Question

Quizplus · Accepted Answer

Actual costs differing from standard costs for the preceding week may indicate a need to investigate and possibly revise standards. However, the other options suggest changes in the production process or external factors that could affect costs, and would likely require revising standard costs.

Which of the Following Conditions Normally Would Not Indicate That