Which of the following is not a reason standard costs are separated into two components? O a. Identifying variances determines which manager must find a solution to major discrepancies. O b. The price and quantity variances need to be identified separately to correct the actual major differences. O c. If a negative variance is overshadowed by a favorable variance, managers may overlook potential corrections. O d. Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results.
Which of the following is not a reason standard costs are separated into two components? O a. Identifying variances determines which manager must find a solution to major discrepancies. O b. The price and quantity variances need to be identified separately to correct the actual major differences. O c. If a negative variance is overshadowed by a favorable variance, managers may overlook potential corrections. O d. Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Which of the following is not a reason standard costs are separated into two components?
O a. Identifying variances determines which manager must find a solution to major discrepancies.
O b. The price and quantity variances need to be identified separately to correct the actual major differences.
O c. If a negative variance is overshadowed by a favorable variance, managers may overlook potential corrections.
d. Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results.
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