ECONOMICS

Detailed explanation-1: -The answer is c) Variances falling outside of an acceptable range of outcomes do not require investigation.

Detailed explanation-2: -A standard cost is more accurate than a budgeted cost. If standard costs are incorporated into the accounting system, it may simplify the costing of inventories and reduce clerical costs.

Detailed explanation-3: -Under the Standard Costing System, which of the following actions is true about the cost variance? Explanation: The real cost of material cost, direct labor, and administration to produce a unit of product is known as actual cost. Variance is the difference between the actual and standard costs.

Detailed explanation-4: -Answer and Explanation: Option (D) is the correct answer. Standard cost is used as the tool for measuring efficiency for controlling the cost of production. Standard cost is part of the cost accounting process.