Question

All of these are benefits of standard costing except:

a) provides a basis for reasonable cost
b) comparisons motivates employees to adhere
c) to standards helps with evaluating the performance of employees
d) prevents managers from using management by exception

Answer 1

The correct answer is d) prevents managers from using management by exception.

Step-by-step explanation:

The correct answer is d) prevents managers from using management by exception.

Standard costing is a cost accounting method that helps companies determine the expected costs of producing goods or providing services.

It provides a basis for reasonable cost comparisons, motivates employees to adhere to standards, and helps with evaluating employee performance. However, it does not prevent managers from using management by exception.

Standard costing offers several advantages to a firm. These include providing a basis for reasonable cost, facilitating comparisons, motivating employees to adhere to standards, and helping with evaluating the performance of employees.