CAF-5 · Chapter 10 · Question 3 of 10
Which type of performance standard is most widely used because it is most likely to motivate employees by setting challenging but achievable targets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Attainable standard
Explanation
Attainable standards are based on challenging but achievable targets. They include allowances for normal waste and idle time. They are the most likely to motivate employees to improve performance.
More Standard Costing MCQs
- Q5When establishing the standard direct labour time required to manufacture a new product, which of the following techniques is commonly…
- Q6A worker takes 4 hours of active production time to complete one unit of a product. If normal idle time (for breaks and setup) is expected…
- Q7Which of the following best describes a "Basic Standard" in standard costing?
- Q8How is the standard fixed overhead absorption rate calculated when deriving the standard cost card of a product?
- Q9When setting a standard cost for direct materials, which of the following factors should the purchasing department normally incorporate…