What Results from Implementing Standard Cost Systems in Manufacturing Environments

Multiple Choice

What results from implementing standard cost systems in manufacturing environments that emphasize continuous improvement and just-in-time manufacturing and purchasing?

A) The standard cost system enhances the operational control.
B) The operational level will benefit from the detailed computation of variances.
C) Variances can be computed and presented in reports to higher-level managers.
D) The materials price variance may encourage the purchasing department to buy in smaller quantities to reduce inventories.