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How does standard costing promote cost-consciousness among employees?
  • a)
    By setting unrealistic and unattainable standards.
  • b)
    By discouraging employees from improving their activities.
  • c)
    By providing incentives and motivation for better efficiency.
  • d)
    By eliminating the need for performance evaluation.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
How does standard costing promote cost-consciousness among employees?a...
Standard costing promotes cost-consciousness among employees by providing incentives and motivation for better efficiency. When employees are aware that their performance is being measured against established standards, they are more likely to work with greater effort to meet or exceed those standards. This increased effort leads to improved efficiency and productivity.
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How does standard costing promote cost-consciousness among employees?a)By setting unrealistic and unattainable standards.b)By discouraging employees from improving their activities.c)By providing incentives and motivation for better efficiency.d)By eliminating the need for performance evaluation.Correct answer is option 'C'. Can you explain this answer?
Question Description
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