______________ standards allow inefficiencies from prior years to be incorporated into the budget, thus providing little incentive for improvement.

Question

Quizplus · Accepted Answer

Past experience standards use historical data to set future budgets, which means that if inefficiencies existed in prior years, they will be incorporated into the budget for the next year without providing any incentive for improvement. This can result in a perpetuation of inefficient processes and practices. Ideal and engineered standards set goals that push for improvement and efficiency, while attainable standards strike a balance between being too challenging and too easy.

______________ Standards Allow Inefficiencies from Prior Years to Be Incorporated