The following scenaris describe situations currently facing companies. i (Click the icon to view the scenarios.) Requirement For each scenario, indicale whether or nol a standard costing system would the beneficial in that situation and explain why or why rol. Each scenario is independent of the other scenarios. (ALibreviations used: GL = general ledger. A selection may be used more than once.) Is Standard costing beneficial? Scenario Why beneficial or why not beneficial? Changes happen daily Inventory is trying to be eliminated Lack of timeliness Product costs are entered into GL inventory accounts al standard cost, rather than actual cost Robots will likely not have the variance that humans would The company is using real time operating performance metrics Unintended behavioral consequences Usefulness in budgeting Variarons would be identified as soon as they occur i More Info As the company grows, the bookkeeping for Batual direct material purchases, actual cayroll costs, and actual manufacluring overhead is becxxning irreasingly complex; the number of transactions to be recorded has significantly increased. Much time is being spent by both managers and accountants in the company recording all of the actual transaction data. Lean practices are being implemented throughout the organization at all levels and in all departments. One of the goals of the Ican nowement is to climinate inventorics if at all possible. Another goal is to strive far continuous Improvement in both the time spent in the manufacturing process and the amount of materials used in the producl. The company has slarled using several real-lime operaaling performance metrics la range operations. Examples of metrics being used include manufacturing lead time in days, manufacturing volume by day, downtime in hours, material cost by day, and several other measures. These performance metrics are available to management in a ushboard that is updated hourly Management wants to design an incentive system that would pay out monthly incentives to factory workers if certain cost and time standards are achieved for beatenl. The goal of this program would be to increase employee motivation levels. An exercise equipment manufacturer has recently installed a ratiolic manufacturing system. This robolic system will be used for most of the welding, painting, assembly, and testing processes in its facility. The workers who used to do these tasks welding painting, assembly and testing) will be retrained and will instead oversae various production lines rather than working directly on the products. The company has recently begun manufacturing a new type of computer chip. The company has very little experience with this type of product or the manufacturing process used for manufacturing the chips. Managers want to be able lo have cost benchmarks so that they can judge whether the actual costs are reasonable for this product A rare and expensive chemical is used in the production of the company's main product. The cost of this material fluctuates wildly on a day-to-day basis, depending on market conditions. In addition, company engineers are continually working to redesign the product to usn Inss of this material. Small incremental decreases in the material usage are being achieved on an ongoing basis