In Setting Price Standards for Materials and Labor

question 12

Multiple Choice

In setting price standards for materials and labor,

• A) the purchasing department must consider discounts, freight, and quality.
• B) personnel must consider payroll taxes, fringe benefits, and qualifications.
• C) it is the joint responsibility of operations, purchasing, personnel, and accounting.
• D) All of these.
• E) None of these.

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Definitions:

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to supply at various prices.

Commodity Increases

Refers to a rise in the quantity supplied or demanded of a good or service, often due to factors like price changes, improvements in technology, or shifts in consumer preferences.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.