127.Indicate whether each of the following statements is true or false.A favorable variance may indicate the existence of unfavorable conditions.Managers should be praised or punished based on...

127.Indicate whether each of the following statements is true or false.


A favorable variance may indicate the existence of unfavorable conditions.
Managers should be praised or punished based on variances.
Budget slack exists when performance standards are set at an ideal, unachievable level.
Establishing standards is the least difficult aspect of using a standard cost system.
A standard is the amount a price, cost, or quantity should be.

128.Indicate whether each of the following statements is true or false.


Standards for direct materials and direct labor should be set by a company's accounting department.
Standards for direct materials and direct labor should be re-evaluated frequently in order to remain relevant and useful.
Historical information is of little use in establishing standards.
A standard represents what should be, not what is or was.
Managers should consider behavioral implications when developing standards.