For each of the following cost standards, indicate which manager is responsible for the standard, and list one factor that should be used in setting the standard
Cost standard Responsible manager Factor used in setting the standard
Direct materials
Direct labor
What will be an ideal response
Cost standard Responsible manager Factor used in setting the standard
Direct materials Purchasing Purchase cost, discounts, delivery requirements, credit policies
Direct labor Human Resources Wage rate based on experience requirements, payroll taxes, fringe benefits
You might also like to view...
You sell your used car to a stranger. He gives you a cheque he knows is bad. By the time you find that out, he has sold the car to a third party. The third party paid a fair price and did not know that the vendor was a fraudsman
What is the situation now as between you and the third party? A) You can get the car returned. The fraudsman could not give good title, because he didn't have it. B) You are out of luck. Title has passed to the innocent third party. C) You can get the car returned. You and the third party are both innocent victims, so title reverts to the last party to have good title, which is you. D) The third party may keep the car, but will have to pay you damages. E) You can get the car returned, but you will have to pay the third party damages.
With random sampling, larger sample sizes generally lead to increased precision
Indicate whether the statement is true or false