The performance standard usually considered best in setting standard costs is?
A) Historical
B) Attainable
C) Average
D) Ideal

Question

Quizplus · Accepted Answer

Attainable performance standard is the best choice as it considers the current and future performance levels and helps in setting reasonable goals for the company. Historical performance standards are based on past performances and may not reflect current market conditions or changes in technology. Average performance standards may lead to mediocrity and lack of ambition. Ideal performance standards may not be achievable and may demotivate employees.

The Performance Standard Usually Considered Best in Setting Standard Costs