The _____________Performance Standard Is Usually Considered Best for Use in Setting

question 52

Multiple Choice

The _____________performance standard is usually considered best for use in setting standard costs.

• A) ideal
• B) average
• C) historical
• D) attainable

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Definitions:

Human Capital

The combined abilities, expertise, and non-physical assets of people that can generate economic benefits for the individuals, their employers, or the society.

Technological Progress

The improvement or development in technology which increases productivity and can lead to economic growth and improved living standards.

Backward-Bending

This term describes a situation where, beyond a certain point, higher wages actually lead to a decrease in labor supply because workers prefer leisure over additional work.

Substitution Effect

The economic principle that as the price of one good increases, consumers will replace it with a similar, less expensive good, influencing demand patterns.