Which of the Following Statements Regarding Standard Costing Is Not

Multiple Choice

Which of the following statements regarding standard costing is not correct?

A) Establishing and maintaining standard costs and the efficient process to sustain cost stability requires great attention to detail.
B) A key benefit of standard costing is that using variance analysis one year helps inform planning and budgeting for the next year.
C) At the beginning of the period, before variances are known, management reviews standards that are in place for that period and considers updating them.
D) Setting standards for direct materials, direct labor and manufacturing overhead is an iterative process.