When Might a Manager Be Justified in Revising a Standard

question 38

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

Demonstrate understanding of economic efficiency and the role of market equilibrium in achieving it.

Recognize the effect of external factors on the supply and demand of products.

Identify how changes in the cost of production materials influence market supply.

Understand the distinction between "supply" and "quantity supplied" and their respective reactions to market changes.

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Definitions:

Producer Price Index

An economic indicator representing the average change over time in the selling prices received by domestic producers for their output.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to track changes in living costs.

Consumer Price Index

A measure that determines the average movement over time in the pricing urban shoppers pay for a selected assortment of consumer goods and services.

Producer Price Index

A gauge of economic health that records the mean shift over periods in the sale prices domestic producers earn from their output.