(a) What are some of the advantages and disadvantages of standard costs? How do managers determine what the standard cost should be? Describe the effect of inaccurate standard costs on financial reporting. How often should we revise standard costs?
(b)When should variances be investigated? Who should be responsible for correcting a negative variance? Why? What are some factors that can lead to variances? How can variances be corrected?
(c) What is the balanced scorecard? What are some of the advantages and disadvantages of the balanced scorecard as a management performance measurement tool? How does the balanced scorecard compare to other management performance measurement tools? Which user groups might benefit the most from the use of a balanced scorecard? Why?