Unattainable standards are likely to lead to:
I. Errors in the accounting information system
II. Favourable variances
III. Unfavourable variances
A) I only
B) II only
C) III only
D) I and III only

Question

Quizplus · Accepted Answer

Unattainable standards set unrealistic expectations for employees, leading to unfavourable variances when actual results cannot meet the unachievable targets. This can also demotivate employees and lead to lowered morale, potentially resulting in a higher likelihood of errors in the accounting information system. However, favourable variances are unlikely to result from unattainable standards.

Unattainable Standards Are Likely to Lead To