A company using very tight (high)standards in a standard cost system should expect that
A)no incentive bonus will be paid.
B)most variances will be unfavorable.
C)employees will be strongly motivated to attain the standards.
D)costs will be controlled better than if lower standards were used.

Question

Quizplus · Accepted Answer

When a company uses very tight standards, it is likely that most variances will be unfavorable because the standards are difficult to achieve, leading to actual performance often falling short of these high expectations.

A Company Using Very Tight (High)standards in a Standard Cost