When Developing Standards, a Standard That Will Almost Never Be

question 58

Multiple Choice

When developing standards, a standard that will almost never be achieved and will result in an unrealistic performance target is:

• A)an attainable standard.
• B)an ideal standard.
• C)a negotiated standard.
• D)a past experience standard.

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Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption.

Activity Cost Pools

A grouping of all costs related to a particular business activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measurement of the amount of time machines are used in production during a specific period.

Batches

Batches refer to a specific quantity of material or products processed or produced at one time in a manufacturing or production process.