Which of the following factors should be considered in establishing standards for use with a standard costing system?
A) Historical data.
B) Current and planned technology, plant layout, and operating procedures.
C) Behavioral implications.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these factors should be considered in establishing standards for use with a standard costing system. Historical data is important to provide a basis for calculating standard costs, current and planned technology, plant layout, and operating procedures are important to ensure accuracy and relevance of standards, and behavioral implications are important to ensure standards are achievable and motivate employees to meet them. Therefore, all of these answers are correct.

Which of the Following Factors Should Be Considered in Establishing