Question
Which of the following statement(s) is/are true regarding standard costs and cost variances? i. they can be used in performance evaluation of managers and divisions.
Which of the following statement(s) is/are true regarding standard costs and cost variances?
i. they can be used in performance evaluation of managers and divisions.
ii. management by exception is used by managers in deciding whether to investigate cost variances.
iii. variance investigation involves looking at only unfavourable variances.
iv. a shorter product life cycle means that standard cost data are only relevant for a shorter time period.
v. using unskilled workers may result in a favourable labour efficiency variance.
Multiple Choice
-
i only
-
i, ii, iii, iv and v
-
i, ii, iii and iv
-
i and ii
-
i, ii and iv
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started