Some variances are the result of standards that are inaccurate or do not reflect the current production process.

Question

Quizplus · Accepted Answer

This statement is true. Variances are calculated by comparing the actual production costs with the standard production costs. If the standards are inaccurate or outdated, the variances will not reflect the true cost of production. Therefore, it is important to ensure that the standards are accurate and regularly updated to ensure meaningful variances.

Some Variances Are the Result of Standards That Are Inaccurate