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:

Machinery

Tangible equipment that is used in operations, often having a significant role in production and manufacturing processes.

Schedule

A plan that outlines tasks, events, or activities, along with their intended times and dates, often used for organization and time management.

Trade-In Allowance

The value that a seller gives to a buyer for an asset exchanged as part of a purchase of a new asset.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its carrying value on the balance sheet.