Question

The primary purpose of calculating standard cost variances each period is: A. To achieve financial control regarding operating activities. B. To facilitate the recording of manufacturing costs during a period. C. To adjust reported income to flexible-budget income. D. To diagnose the cause of operating problems as well as what should be done to correct such problems. E. To minimize income tax liabilities. Next

Answer 1

A. To achieve financial control regarding operating activities.

Step-by-step explanation:

Standard cost variance refers to the difference between budgeted costs and actual costs. One of the basic administrative functions is to control the company's activities, and calculating the standard cost variance can help you control how well the company's production processes are functioning.