1) How do managers and companies set price and quantity standards?

A) Based on the ideal budget created for the operating division.

B) Based on prior period variances.

C) Based on historical data, industry averages, and the results of process studies.

D) Based on a manager's previous experience at another company.

2) A quantity standard is:

A) the total dollar amount that a company expects to spend to achieve a given level of output.

B) a form that shows what the company should spend to make a single unit of product.

C) the price that should be paid for a specific quantity of input.

D) the amount of input that should be used in each unit of product or service.