When Calculating Standard Costs,what Standards Do Direct Materials and Direct

question 126

Multiple Choice

When calculating standard costs,what standards do direct materials and direct labor have?

• A)Efficiency (quantity)standard
• B)Flexible standard
• C)Price standard
• D)Both A and C

---

Definitions:

Executive Pay

The compensation and benefits package awarded to corporate executives, including salary, bonuses, and stock options.

Scanlon Plan

A type of gain-sharing program that rewards employees for contributions to the company's efficiency and profitability.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Compensation

The full quantity of cash and other forms of rewards offered to an employee by their employer as compensation for services rendered.