The use of standards allows managers to:
A) identify the sources of variances
B) determine whether the offsetting of variances is hiding operational problems
C) neither a or b
D) both a and b

Question

Quizplus · Accepted Answer

Standards help managers identify where actual performance deviates from expected performance (sources of variances) and also reveal if compensating variances are masking underlying operational issues, thus both A and B are correct.

The Use of Standards Allows Managers To