QAEconomics › Disadvantages of using standard costs and variances include all of the following except
Q

Disadvantages of using standard costs and variances include all of the following except

A) the excessive cost to keep standards up-to-date.

B) companies that pay employees a salary because direct labor is a fixed cost rather than a variable cost.

C) those manufacturing costs that enter Work in Process Inventory are recorded at standard cost, rather than actual cost.

D) traditional standards can promote unfavorable employee behavior.

A

Answer: C. Those manufacturing costs that enter Work in Process Inventory are recorded at standard cost, rather than actual cost.

This cost covers products that are on their way to being fully completed.

3 years ago
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