Question

Which set contains causes of deviations?

Options

• Training employees, allowing overtime, revising standards

• Gross profit ratio, net profit ratio, return on investment

• Personal observation, sample checking, performance reports

• Unrealistic standards, defective process, resource inadequacy

Answer 1

Unrealistic standards, a defective process, and resource inadequacy can cause deviations. They must be considered when analysing why actual performance differs from standards.