Historical experience should be used with caution in setting standards because a. most companies keep poor records.
Question:
Historical experience should be used with caution in setting standards because
a. most companies keep poor records.
b. ideal standards are always better than historical standards.
c. they may not be achievable by operating personnel.
d. they may perpetuate operating inefficiencies.
e. none of the above.
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The correct answer is d they may perpetuate operating inefficiencies The use of historical data to set standards can perpetuate operating inefficienci...View the full answer
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Related Book For 
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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