contestada

All of the following are advantages of standard costs except that they: a. facilitate management planning. b. are useful in setting selling prices. c. simplify costing in inventories. d. increase net income.

Respuesta :

All of the following are advantages of standard costs except that they increase net income.

Explanation:

Standard costs are typically related to the raw inventory, raw labour and overhead output costs of a manufacturing business. Most producers delegate the estimated or normal costs, rather than assigning the real costs of raw content, raw labour and overhead for production to a company.

Five of the advantages of a business that uses the traditional cost structure:

  • Costs management is enhanced
  • Very useful information for planning and decision taking in administration.
  • Inventory calculations are more accurate and faster.
  • Record-keeping expense savings.
  • Possible production cost cuts.