Asked by
Stacy Wit-two
on Nov 13, 2024
Verified
Which of the following is not considered an advantage of using standard costs?
A) Standard costs can reduce clerical costs.
B) Standard costs can be useful in setting prices for finished goods.
C) Standard costs can be used as a means of finding fault with performance.
D) Standard costs can make employees "cost-conscious."
Standard Costs
Predetermined costs for materials, labor, and overhead used as a benchmark to measure performance and cost control.
Clerical Costs
Expenses related to the administrative functions of an office, including salaries of office staff, stationery, and office supplies.
- Understand the potential benefits and drawbacks of employing standard costs.
Verified Answer
NF
Learning Objectives
- Understand the potential benefits and drawbacks of employing standard costs.