ency variance. IV. Multiple Choice 1. 2. Which of the following is true concerning standard costs? a. b. PP C. d. Standard costs are estimates of costs attainable only under the most ideal conditions but rarely practicable. Standard costs are difficult to use with a process costing system If probably used, standard can help motivate employees. Unfavorable variance, material in amount, should be investigated but large favorable variance need not be investigated. Which of the following terms is best identified with a system of standard costs? a. b. C. d. 3. a. Marginal costing. Contribution approach. Management by exception. Standardized accounting system. Which of the following is standard cost nearly like? Estimate cost. 4. b. Budgeted cost. C. Product cost. d. Period cost. Which of the following best characterizes a standard cost system? Standard costs involve cost control which, in turn, mean cost reduction. a. Standards can pinpoint responsibility and can help motivate employees. T b