Question

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

A. Ideal
B. Engineered
C. Attainable
D. Past experience

Answer 1

Experience standards (option D) allow prior inefficiencies to be factored into new budgets, which could discourage improvements and innovation by continuing to use old data.

Step-by-step explanation:

The standards in question, which allow inefficiencies from prior years to be incorporated into the budget and provide little incentive for improvement, are experience standards (option D). Unlike ideal, engineered, or attainable standards, which set benchmarks based on optimal, technical, or achievable goals, experience standards rely on historical data, which may include inefficiencies or outdated practices. Therefore, this approach can potentially result in continuously carrying over past inefficiencies into new budgets, without encouraging the pursuit of improvements or the setting of more achievable and relevant goals.