Which of the Following Statements Is Correct

question 45

Multiple Choice

Which of the following statements is correct?

• A) Establishing standards is the least difficult aspect of using a standard cost system.
• B) Managers should be praised or punished based on variances.
• C) A favorable variance may indicate the existence of unfavorable conditions.
• D) Budget slack exists when performance standards are set at an ideal, unachievable level.

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Definitions:

Lord Dartmouth's

Pertaining to or associated with William Legge, the 2nd Earl of Dartmouth, an English nobleman involved in colonial American affairs pre-Revolution.

Concord

Concord refers to an agreement or harmony between parties or states, often used historically to describe peace treaties.

General Gage

Thomas Gage was a British general best known for his role in the early stages of the American Revolutionary War, particularly for his leadership in the battles of Lexington and Concord.

Commander-In-Chief

The title held by the president of a country or the highest-ranking official of the armed forces, denoting supreme authority over the military organizations.