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Question

The technique of standard costing may not be applicable in the case of ________.

A
Large concerns
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B
Small concerns
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C
All concerns
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D
Both B and C
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Solution

The correct option is B Small concerns
Setting of standards is a very difficult task. It requires a lot of scientific studies such as time-study, motion- study, fatigue study etc. and therefore it is very costly. Small firms may find it very difficult to operate such system.

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