A Company Using Very Tight (High)standards in a Standard Cost

question 31

Multiple Choice

A company using very tight (high) standards in a standard cost system should expect that

• A)no incentive bonus will be paid.
• B)most variances will be unfavorable.
• C)employees will be strongly motivated to attain the standards.
• D)costs will be controlled better than if lower standards were used.

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Definitions:

Spreading Activation Model

A cognitive model that explains how information is retrieved in the brain based on the concept of networks of connected ideas.

Memory

The faculty by which the mind stores and remembers information, allowing past experiences to influence future behavior and cognition.

Schema

A cognitive framework or concept that helps organize and interpret information in the world around us.

Drinking Alcohol

The act of consuming beverages that contain ethanol, which can affect the body and mind in various ways depending on the amount and frequency of consumption.