Question Content AreaStandard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits for using standard costs?a. They are used to estimate the cost of inventory.b. They are used to control costs.c. They are used to indicate where changes in technology and machinery need to be made.d. They are used to plan direct materials, direct labor, and variable factory overhead.

The objective of the question is to identify which of the given options is not a benefit of using…

Answered: Question Content Area Standard costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Question Content Area

Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits for using standard costs?

a. They are used to estimate the cost of inventory.

b. They are used to control costs.

c. They are used to indicate where changes in technology and machinery need to be made.

d. They are used to plan direct materials, direct labor, and variable factory overhead.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.