134 Which one of the following is the least likely reason why standard costs might not easily be applied to road haulage and distribution services.
A It is difficult to measure labour times reliably
B Variable costs are negligible
C It is difficult to identify a standard item for costing
D Standard costing applies to manufacturing industries only
Hi sir I have a question I think B is the most likely reason why standard cost not easily be applied
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Budget and control
9y ago#1I am puzzled why you are asking this, because the question is from the BPP Revision Kit and the Kit has the answer in it, together with a full explanation of why C is the correct answer!!
The answer is C - it is difficult to establish a standard item for costing.
(Why should the fact that variable costs are negligible be an answer? There are plenty of variable costs in road haulage and distribution - for example, the bigger the distance then the more fuel will be used!)
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