A benefit of using a standard cost system is that it can boost morale and motivate employees,if properly maintained.

Question

Quizplus · Accepted Answer

Standard cost system provides a clear understanding of expected costs and how they relate to performance, which can motivate employees to work towards meeting or exceeding those standards. When employees see a direct correlation between their efforts and the impact on costs, it can boost their morale and motivate them to continue achieving high standards.

A Benefit of Using a Standard Cost System Is That