Which of the following is a method of determining the standard quantity of direct labor? An analysis of past data regarding overhead required for various levels of production B. Labor contract negotiated with the union employees C. Time-and-motion studies conducted by Industrial engineers D. Suppliers' estimates of labor quantities to be used Which of the following is a reason that most managers support the use of attainable standards rather than ideal standards? Attainable standards allow for an occasional equipment failure. B. Attainable standards recognize that suppliers must provide raw materials with no defects. C. Attainable standards are required in order to have zero variances. D. Attainable standards motivate employees to achieve perfection. Why are accounting distortions removed when evaluating performance using EVA? To remove amounts that are a free source of financing B. To remove amounts that divisional managers are unable to control C. To remove the costs of assets that must be capitalized under GAAP D. To encourage managers to spend money on elements that will benefit the company in the long run Which one of the following is not an advantage of decentralization for an organization? Enhanced goal congruence, because the subunits managers are more focused to improve the performance of the company as a whole. B. Faster response to changing circumstances, because decisions are not made by higher-level managers who need to be advised of all the facts C. Increased motivation of managers, because they are responsible for their own decisions and the results of their respective divisions D. Better training for future executives, because lower level managers get involved in more diverse business decisions