Which of the following is not a limitation of standard costing system?
A) Standard costing system takes a process perspective rather than a departmental perspective.
B) Standard costing system becomes outdated easily.
C) Standard costing systems do not encourage continuous improvement
D) Standard costing system focuses on the consequences rather than the causes of variances.

Question

Quizplus · Accepted Answer

This statement is actually not a limitation, but a feature of standard costing system. It provides a process-oriented perspective on costs rather than a departmental one. The other choices are all limitations of standard costing system.

Which of the Following Is Not a Limitation of Standard