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

Question

Quizplus · Accepted Answer

Unattainable standards are likely to lead to unfavorable variances because they set unrealistic expectations that are difficult to meet, resulting in performance falling short of the standards.

Unattainable Standards Are Likely to Lead to I