Which of the Following Statements Concerning Practical Standards Is NOT

question 216

Multiple Choice

Which of the following statements concerning practical standards is NOT correct?

• A) Practical standards can be used for product costing and cash budgeting.
• B) Practical standards can be attained by the average worker.
• C) When practical standards are used; there is no reason to adjust standards if an old machine is replaced by a newer, faster machine.
• D) Under practical standards, large variances are less likely than under ideal standards.

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Definitions:

Oligopoly

An industry with only a small number of producers.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and no barriers to entry or exit, leading to optimal distribution of resources.

Perfect Competition

A market structure characterized by an infinite number of small sellers, identical products, and free market entry and exit.

Grade A Large Eggs

A classification for eggs that are of a specific quality and size, indicating freshness and shell integrity.