Which of these statement is TRUE for a standard cost system? A) Standard cost systems help managers ensure the accuracy of financial records. B) Firms can use time-motion studies and industry benchmarks to set standards. C) The Production Department sets all standards and does not need input from other departments. D) The standards used are the actual costs incurred to produce a product.
Which of these statement is TRUE for a standard cost system? A) Standard cost systems help managers ensure the accuracy of financial records. B) Firms can use time-motion studies and industry benchmarks to set standards. C) The Production Department sets all standards and does not need input from other departments. D) The standards used are the actual costs incurred to produce a product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please explain why the option is correct and why the other options are incorrect
Transcribed Image Text:Which of these statement is TRUE
for a standard cost system?
A) Standard cost systems help
managers ensure the accuracy of
financial records.
B) Firms can use time-motion studies
and industry benchmarks to set
standards.
C) The Production Department sets
all standards and does not need
input from other
departments.
D) The standards used are the actual
costs incurred to produce a product.
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