The Following Statements Relate to Standard Costing Systems

Multiple Choice

The following statements relate to standard costing systems:
I Computation of standard costs and cost variances enables managers to employ management by exception.
II Variances provide a means of performance evaluation and rewards for employees
III Short product life cycles mean that standards are relevant for only a short time
IV Use of standard costs in product costing results in more stable product costs than if actual product costs were used
Which of these statements are considered advantages of standard costing?

A) I, II
B) I, III
C) I, II, IV
D) I, III, IV