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. |
Answer : A) To Achieve Financial Control regarding operating Activities
The Purpose to Measure the Standard cost Variance is to know
about the Financial control over the Expenditure in the Operating
Activites. Standard Cost Variance AMusres the Difference
between the Standard cost and Actual cost, and Find out the Reasons
for Differences.
The primary purpose of calculating standard cost variances each period is: A. To achieve financial control...