Variance analysis – Kaplan exam kit, Q149

Q149
The following statements have been made in relation to the use of standard costs in rapidly changing environments:

(1) Variance analysis results will take into account important criteria such as customer satisfaction or quality of production.
(2) Achieving standards is suitable in most modern manufacturing environments.

Which of the above statement(s) is/are true?

A (1) only
B (2) only
C Neither (1) nor (2)
D Both (1) and (2)
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I thought the answer would be C but Kaplan says it’s D with no further explanations.
My understanding is that standard costing and traditional variance analysis are not really suitable in modern manufacturing environment that could be represented by TQM and JIT. What have I got wrong Sir?