Economics · Standard Costing Limitations
Which of the following are recognized as limitations of the Standard Costing technique? A. The process of setting and maintaining standards is often expensive and requires the involvement of skilled personnel. B. Standard costing systems are specifically designed to capture and report compromises in product quality as part of the variance analysis. C. In dynamic industries characterized by rapid technological shifts, standards may become obsolete very quickly. D. The use of Ideal (Perfection) Standards can lead to the demoralization of workers and may result in the manipulation of data. Choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A, B and D Only
- 2A, C and D Only✓
- 3B, C and D Only
- 4A, B and C Only
Correct answer
A, C and D Only
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