US CMA Part 1 · Chapter 2 · Question 7 of 30
Which type of standard is generally considered most likely to motivate employees when used for budgeting and performance evaluation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Currently attainable (practical) standards that allow for normal spoilage, downtime and rest periods
Explanation
Attainable standards are challenging but achievable with efficient effort, which tends to motivate employees. Ideal standards are rarely met and can discourage staff; historical and basic standards may embed past inefficiency or become outdated.
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