What Is The Criticism On Standard Costing System


1. Variable overhead efficiency variance occurs as the result of:

  • The efficient or inefficient usage of electricity, indirect material or other variable overhead items.
  • The efficient or inefficient use of the cost drivers, such as direct labor hours or machine hours, that are used to apply variable overhead.
  • Producing completed units for finished goods inventory instead of producing completed units for sale.
  • A difference between the budgeted amount of units sold and the actual amount of units sold.

2. Which of the following is not a criticism of standard costing systems?

  • Variances are too aggregated and concentrate on the consequences rather than the causes of the problems.
  • Variance analysis explicitly encourages continuous improvement.
  • Standard costing systems place too much emphasis on the cost and efficiency of direct labor.
  • Variance reports are produced too late to be useful.



These multiple choice questions belong to Accounting. The 1st question discusses about variable overhead efficiency variance and the 2nd question is about the criticism for standard costing system.

Total Word Count NA

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.