Bookmark question for later

Which ONE of the following is NOT one of the steps in establishing and operating a standard cost system?

• Record the variances
• Develop standard costs
• Take action to eliminate variances (or revise the standard)
• Report the variances to the responsible managers
• Collect actual costs
• Apply manufacturing overhead
• Identify variances (differences between actual and standard costs)
• Analyze causes of significant, controllable variances