In establishing standards for a standard cost system: for morale purposes they s
ID: 2594761 • Letter: I
Question
In establishing standards for a standard cost system:
for morale purposes they should be set so that they will easily be met.
they should be a goal representing a reasonably attainable level of performance.
they should be set so that they will be difficult to meet so they can be a basis for rewarding outstanding performance.
they should be set without regard to employee motivation.
A.for morale purposes they should be set so that they will easily be met.
B.they should be a goal representing a reasonably attainable level of performance.
C.they should be set so that they will be difficult to meet so they can be a basis for rewarding outstanding performance.
D.they should be set without regard to employee motivation.
Explanation / Answer
In establishing standards for a standard cost system they should be a goal representing a reasonably attainable level of performance. Option B is correct