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 very tight (high) standards are used in a standard cost system, it is more challenging for employees to meet these standards, leading to most variances being unfavorable because actual performance often falls short of these high benchmarks.

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