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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 13MCQ: (Appendix 10A) Which of the following items describes practices surrounding the recording of...
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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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