Multiple Choice
Reference: 11-11
The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow:
-Which of the following statements is not true about the use of a standard cost system
A) Standards can be used by individuals to judge their own performance.
B) A favourable variance will always be good thing for a business.
C) The use of standard costs can greatly simplify bookkeeping.
D) As long as costs do not fall significantly outside of standards managers can usually focus on other issues.
Correct Answer:

Verified
Correct Answer:
Verified
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