Which of the Following Statements Is False Regarding Perfection Standards

question 51

Multiple Choice

Which of the following statements is false regarding perfection standards?

• A) They are attained only under optimum operating conditions.
• B) These standards assume peak efficiency, lowest input prices and best quality materials attainable.
• C) These standards motivate some employees to achieve the lowest cost possible.
• D) The benefits of these standards have been proven and are irrefutable.

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Definitions:

Frustration of Purpose

A legal defense allowing for the termination of a contract when an unexpected event undermines the contract's core purpose.

General Contract Law

The body of law that governs the formation, execution, and enforcement of agreements between parties.

Right of Inspection

The legal right to examine and review a company's books, records, and documents, typically granted to directors, officers, and shareholders.

Nonconforming Goods

Goods that fail to meet the specifications or standards outlined in a contract.