Which of the following is not an advantage of standard costs?
Which of the following is not an advantage of standard costs?
| Q. | Which of the following is not an advantage of standard costing? |
|---|---|
| A. | It provides a basis for sensible cost comparisons |
| B. | It enables managers to employ management by exception |
| C. | It provides a mean of performance evaluation and employee rewards |
| D. | It is usually less expensive than actual or normal costing |
Which of the following is an advantage of standard costing?
Five of the benefits that result from a business using a standard cost system are: Improved cost control. More useful information for managerial planning and decision making. More reasonable and easier inventory measurements.
What are the disadvantages of standard costing?
Disadvantages of Standard Costing
- Costly System.
- Difficulties in Fixation of Standard.
- Constraint for Service Industry.
- Consistency of Standard.
- Unsuitable for Non Standardised Products.
- Relatively Fixed Standards.
- Difficulties for Small Industries.
What are the features and advantages of standard costing?
Standard costing is a perfect system of controlling the costs and measuring efficiency and its development. It is a technique of cost reduction and cost control. It helps to provide valuable guidance in several management functions such as formulating policies, determining price level, etc.
What is a standard cost quizlet?
A standard cost is the predetermined cost of manufacturing a single unit or a specific quantity of product during a specific period. It is the planned cost of a product under current or anticipated operating conditions.
What is true about standard costs?
Standard Costing is an integral part of the costing process within an organisation. It is a process that helps compare the revenues and actual cost of producing a good or service with the actual results to measure the variance and understand its reasons.
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