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:

Principal-Employer

The primary entity or individual who employs and is responsible for the actions of their workers or agents.

Wrongful Acts

Actions or conduct that are unlawful or infringe upon someone's rights.

MRSxy

The marginal rate of substitution (MRSxy) is the rate at which a consumer is willing to trade off one good (x) for another (y) while maintaining the same level of utility.

MUx

Marginal Utility with respect to a good or service x, representing the additional satisfaction gained from consuming one more unit of it.