Standard costs:
A)allow a manager to assess the eﬃciency of operations.
B)allow a company to practice management by exception.
C)provide management with a basis for performance evaluations.
D)if set correctly, can provide a motivational tool for employees.
E)All of the answers are correct.

Question

Quizplus · Accepted Answer

Standard costs serve all of the purposes listed in the options, including allowing a manager to assess efficiency, practicing management by exception, providing a basis for performance evaluations, and even providing a motivational tool for employees if set correctly. Therefore, all of the answers are correct.

Standard Costs