Standards are performance goals used to evaluate and control operations.

True

False

Standards are set for only direct labor and direct materials.

True

False

The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.

True

False

Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area.

True

False

While setting standards, managers should never allow for spoilage or machine breakdowns in th$$ir calculations.

True

False

The difference between the standard cost of a product and its actual cost is called a cost variance.