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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.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 25Q: When allocating service department costs to production departments, why is the standard cost that...
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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.
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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