Standards Are Considered to Be Most Useful When They Are

question 70

Multiple Choice

Standards are considered to be most useful when they are expressed in:

• A)dollars per unit of input to the manufacturing process.
• B)quantities per unit of output from the process being evaluated.
• C)unit and total costs for the accounting period for the department being evaluated.
• D)terms most easily related to by the individual whose performance is being evaluated.

---

Definitions:

Uncertainty Resolution

The process of clarifying and reducing the uncertainty in decision-making or forecasting, particularly through the gathering of more information oranalysis.

Tends

Likely to behave in a particular way or follow a specific pattern over time.

High Dividend Payout

Refers to companies that return a large portion of their earnings to shareholders in the form of dividends, often signaling financial strength.

Flotation Costs

Expenses incurred by a company when issuing new securities, including legal, underwriting, and advertising costs.