One advantage of setting standards is that they can assist in:

Setting standards plays a critical role in financial management and operational efficiency. One significant advantage is that they assist in achieving accurate overall budgets. By establishing clear and measurable performance benchmarks, organizations can base their budgets on realistic expectations, considering historical data and anticipated outcomes.

When standards are set, they provide clear guidance for both revenue and expenditure, facilitating better forecasting and control. This structured approach allows for more effective monitoring of actual performance against these standards, leading to informed decision-making and adjustments as necessary. The regular comparison between budgeted and actual results helps organizations identify any financial discrepancies early, thereby enabling proactive management of resources and financial planning.

In contrast, the other options do not accurately reflect the purpose or capabilities of standards. Standards cannot completely eliminate variances in costs; they simply provide a framework for measuring these variances. Similarly, while standards guide performance, they do not intend to stop competition, nor do they dictate staffing levels.