[amp_mcq option1=”Standard costing is a system where predetermined costs are used for control of entire organisation” option2=”Standard may be expressed in quantitative and monetary measures” option3=”Only adverse variances are investigated intensively” option4=”Standard is determined for each element of cost” correct=”option3″]<\/p>\n
The correct answer is C. Only adverse variances are investigated intensively.<\/p>\n
Standard costing is a system where predetermined costs are used for control of entire organisation. Standards may be expressed in quantitative and monetary measures. Standards are determined for each element of cost.<\/p>\n
Investigating variances is an important part of standard costing. However, both favorable and unfavorable variances should be investigated. Favorable variances may indicate that costs are being controlled well, while unfavorable variances may indicate that costs are out of control. It is important to investigate all variances in order to identify and correct any problems that may be occurring.<\/p>\n
Here is a more detailed explanation of each option:<\/p>\n
A. Standard costing is a system where predetermined costs are used for control of entire organisation. This is correct. Standard costing is a system that uses predetermined costs to control costs and evaluate performance.<\/p>\n
B. Standard may be expressed in quantitative and monetary measures. This is correct. Standards can be expressed in both quantitative and monetary measures. Quantitative measures can include units produced, hours worked, and machine hours. Monetary measures can include direct materials, direct labor, and overhead costs.<\/p>\n
C. Only adverse variances are investigated intensively. This is incorrect. Both favorable and unfavorable variances should be investigated. Favorable variances may indicate that costs are being controlled well, while unfavorable variances may indicate that costs are out of control. It is important to investigate all variances in order to identify and correct any problems that may be occurring.<\/p>\n
D. Standard is determined for each element of cost. This is correct. Standards are determined for each element of cost, including direct materials, direct labor, and overhead costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Standard costing is a system where predetermined costs are used for control of entire organisation” option2=”Standard may be expressed in quantitative and monetary measures” option3=”Only adverse variances are investigated intensively” option4=”Standard is determined for each element of cost” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47652","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n