The Direct Materials Price Standard Should Include an Amount for All

question 179

Multiple Choice

The direct materials price standard should include an amount for all of the following except

• A) receiving costs.
• B) storing costs.
• C) handling costs.
• D) normal spoilage costs.

---

Definitions:

Detailed Revenue Targets

Specific, granular goals set for the income that a company aims to generate within a certain period.

Operational Planning

The process of planning short-term actions and strategies to achieve company goals and objectives.

Profit Objectives

Financial goals set by a business aiming to achieve a specific amount of profit over a certain period of time.

Short-Term

Relating to financial instruments or borrowing with a maturity of one year or less, or to activities or planning over a similar timeframe.