Disadvantages of Using Standard Costs Include All of the Following

question 92

Multiple Choice

Disadvantages of using standard costs include all of the following except

• A)the cost of keeping standards up-to-date.
• B)the shift towards salaried employees means that labor costs are now fixed rather than variable.
• C)practical standards can discourage employees and decrease productivity.
• D)traditional standards can promote unfavorable employee behavior.

Recognize best practices and guidelines for success in family businesses.

Understand the dynamics and challenges of family members entering a family business.

Analyze major considerations in assessing the financial condition of an existing business.

Understand the nature of goodwill as an intangible asset.

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Definitions:

Information-Processing Perspective

A psychological approach that likens human thought to the workings of a computer, focusing on the ways we take in, store, and retrieve information.

Cognitive Development

The process of growth and change in intellectual capabilities that influence a person’s behavior and learning abilities.

Psychosocial Development

The process of personality and emotional growth that occurs through interactions with others across the lifespan.

Transitive Inference

A form of logical reasoning that allows one to deduce a relation between two items based on their relations to a third item.