A Company Using Very Tight (High)standards in a Standard Cost

question 169

Multiple Choice

A company using very tight (high) standards in a standard cost system should expect that

• A)no incentive bonus will be paid.
• B)most variances will be unfavorable.
• C)employees will be strongly motivated to attain the standards.
• D)costs will be controlled better than if lower standards were useD.

Recognize the types of accounts that typically require year-end adjustments.

Describe the concept and calculation of depreciation for fixed assets.

Analyze the impact of incorrect adjustments on financial statements.

Comprehend the significance of historical cost in accounting records.

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