When Might a Manager Be Justified in Revising a Standard

question 16

Multiple Choice

When might a manager be justified in revising a standard rather than taking corrective action to remedy a significant performance deviation?

• A)when performance exceeds the standard
• B)when performance falls slightly short of the standard
• C)when performance falls far short of the standard
• D)when the standard is unrealistic

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Definitions:

Inputs That Substitute

Resources or factors of production that can be used in place of one another in the manufacturing process.

Units Of Input

The quantities of labor, capital, materials, and other resources used in the production of goods or services.

Units Of Outputs

The individual items or quantities of service produced by an economic entity.

Cost Of Capital

The cost of funds used for financing a business, expressed as the rate of return that investors expect from the capital invested in the business.