A cost benchmark is valid only if the standards are
A)based on historical costs.
B)kept up to date.
C)reviewed by salaried assembly-line workers.
D)practical and attainable.

Question

Quizplus · Accepted Answer

A cost benchmark will not be valid if the standards are not kept up to date. This is because a cost benchmark serves as a reference point for businesses to measure their costs against their competitors or industry standards. If the standards are outdated, it may not accurately reflect the current market and could lead to inaccurate comparisons and decisions.

A Cost Benchmark Is Valid Only If the Standards Are