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:

Total War

A form of warfare that involves mobilizing all of a nation's resources, including civilians and the economy, for the war effort, often blurring the lines between combatants and non-combatants.

Enemy Aircraft

Any aircraft belonging to or operated by a hostile or opposing force, often engaged in military or warfare activities.

Collaborationist French Government

The government established in Vichy, France, during World War II that collaborated with Nazi Germany, officially known as the French State.

Marshal Pétain

A French military officer and political figure who led France during World War II and headed the Vichy government, collaborating with Nazi Germany.