In order for cost benchmarks to be effective, standard costs must be

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Quizplus · Accepted Answer

Cost benchmarks need to be updated regularly to be effective as costs may change due to various internal and external factors. Standard costs based solely on historical costs may not be relevant or realistic in the current market conditions. Moreover, cost benchmarks should be practical and attainable to ensure they are achievable by the organization. However, the review of these benchmarks by salaried assembly-line workers may not be necessary for their effectiveness.

In Order for Cost Benchmarks to Be Effective, Standard Costs