In establishing standards for a standard cost system: for morale purposes they s
ID: 2595832 • 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 set without regard to employee motivation.
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 a goal representing a reasonably attainable level of performance
A.for morale purposes they should be set so that they will easily be met.
B.they should be set without regard to employee motivation.
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 a goal representing a reasonably attainable level of performance
Explanation / Answer
Answer: Option D. they should be a goal representing a reasonably attainable level of performance.
Explanation: Standards established for a standard cost system should be reasonably attainable so as to motivate employees to strive to achieve them and be rewarded for performance. They should not be too low nor too high but attainable with reasonable efforts.