Which of the following is not a limitation of standard costing system?

A) Standard costing system takes a process perspective rather than a departmental perspective.
B) Standard costing system becomes outdated easily.
C) Standard costing systems do not encourage continuous improvement
D) Standard costing system focuses on the consequences rather than the causes of variances.

Standard Costing System

An accounting method that applies predetermined costs to measure the cost of goods sold and performance.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or breakthrough improvements all at once.

Process Perspective

An approach to management that focuses on the optimization and improvement of business processes to achieve better performance and outcomes.