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:

Sales Calls

Direct interactions between salespeople and potential or current customers, aimed at promoting and selling a product or service.

Competitive Position

A firm's standing or rank in comparison to its competitors in terms of market share, profitability, and product quality.

Job Analysis

A systematic process for gathering, documenting, and analyzing information about the content, requirements, and context of a job.

Sales Position

A role within a company focused on selling products or services, typically involving activities like prospecting for new clients, presenting products, and closing sales.