Which of the following is the performance standard usually considered best in setting standard costs?
A) Profitable
B) Optimal
C) Attainable
D) Historical

Question

Quizplus · Accepted Answer

Attainable standard costs provide a balance between a goal that is challenging yet realistic, ensuring that employees are motivated to achieve the standard while not setting expectations that are impossible to meet. Profitable and optimal standards do not necessarily consider the practicality of achieving the standard, while historical standards do not necessarily reflect current or future performance capabilities.

Which of the Following Is the Performance Standard Usually Considered