The performance standard that is usually considered best for use in setting standard costs is:
A) historical.
B) attainable.
C) ideal.
D) average.

Question

Quizplus · Accepted Answer

Attainable performance standards are considered the best for setting standard costs because they reflect what is achievable under normal conditions and encourage employees to strive for improvement. Historical standards may not reflect current capabilities, ideal standards may not be feasible, and average standards may not encourage above-average performance.

The Performance Standard That Is Usually Considered Best for Use