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This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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June 27, 2021 at 2:12 pm #626463
xyzc
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Which of the following is the least likely reason why standard costs might not easily be applied to road haulage and distribution services?
It is difficult to measure labour times reliably
Variable costs are negligible
It is difficult to identify a standard item for costing
Standard costing applies to manufacturing industries only
Why variable costs are negligible not the correct answer and why the correct answer is correct
June 27, 2021 at 2:50 pm #626470
John Moffat
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Because they are not going to be negligible. What about all the costs of fuel? They are certainly not going to be neglible costs!!!
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