Which of the Following Are Methods for Setting Standards

question 8

Multiple Choice

Which of the following are methods for setting standards?

• A)Analysis of the perfect outcome.
• B)Analysis of a competitor's financial statements.
• C)Task analysis and the analysis of historical data.
• D)Matrix application forms.
• E)Goal congruence.

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Definitions:

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, or loan payments.

Variable Costs

Costs that change in proportion to the amount of goods or services produced.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, yielding the cost per unit on average.