The Direct Materials Price Standard Is Determined by Averaging Costs

question 96

True/False

The direct materials price standard is determined by averaging costs of current purchases.

---

Definitions:

Carrier Selection

The process of choosing a logistics service provider or carrier to transport goods, considering factors like cost, reliability, and speed.

Mode Selection

The process of choosing the most appropriate method of transportation for goods based on factors like cost, time, and product characteristics.

Transportation Responsibility

The duty concerning the movement of goods including planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information.

Routing Guide

A set of instructions and rules provided by shippers to carriers and logistics providers detailing specifications and requirements for transporting goods, ensuring efficiency and compliance.