Which of the following statements about standards is FALSE? When setting standards a company should use tight but attainable amounts so employees do not get discouraged. O Excess emphasis on variances can result in a company ignoring other important objectives such as customer satisfaction and improving the quality of the product. Of variances are misused to punish employees, dysfunctional decisions made be made by employees. O Standard reports are normally prepared monthly and therefore the information is up to date and useful for management decisions. Question 3 Budgets developed before a period begins are O called flexible budgets because they are easier to adapt to actual results. O extremely accurate because the actual level of activity is normally the same as the budgeted activity. called static budgets O prepared entirely by the department managers because the finance and accounting department is busy with the year-end audit 2 pts