The use of standards for nonmanufacturing expenses is:
A) not as common as it is for manufacturing costs
B) as common as it is for manufacturing costs
C) not useful
D) impossible

Question

Quizplus · Accepted Answer

It is relatively less common to use standards for nonmanufacturing expenses such as selling, administrative, and financial expenses, compared to manufacturing costs. This is because nonmanufacturing costs are often difficult to standardize due to their varying nature and frequency. However, some companies may still use standards for certain nonmanufacturing expenses to improve budgeting and cost control.

The Use of Standards for Nonmanufacturing Expenses Is