Standard costs for production inputs help motivate employees by serving as benchmarks against which their performance is measured.

Question

Quizplus · Accepted Answer

Standard costs act as a reference point that employees can understand and strive towards. They can help set expectations for individuals and teams, and provide a clear framework for evaluating performance. This can be motivating for employees, as they can see how their work contributes to overall productivity and profitability.

Standard Costs for Production Inputs Help Motivate Employees by Serving