Establishing Standard Cost Amounts

question 4

Essay

Establishing standard cost amounts
Explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.

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Definitions:

Security Risks

Potential threats that could compromise the safety and security of individuals, data, or physical assets.

Service Risks

Service risks are potential threats or vulnerabilities that can affect the delivery or quality of services offered by a business or organization.

Organization's Culture

The shared values, beliefs, and practices that influence how members of the organization interact and work together.

Outsourcing

The practice of hiring third parties to conduct services or create goods that were typically performed in-house, as a strategy to reduce costs, access specialized skills, or improve focus on core business activities.