The Standard Price Per Unit for Direct Materials Should Not

question 2

True/False

The standard price per unit for direct materials should not include the cost of delivering the materials.

---

Definitions:

Capital Investment

Funds invested in a firm or enterprise for the purposes of furthering its business objectives.

Internal Rate

Refers to the rate of growth a project is expected to generate.

Return Method

A sales return approach where the selling price of returned goods is deducted from gross sales to calculate net sales.

Capital Investment Analysis

The process by which management plans, evaluates, and controls long-term capital investments involving property, plant, and equipment.