Which of the Following Are Methods for Setting Standards

question 55

Multiple Choice

Which of the following are methods for setting standards?

• A) Historical data analysis and cost analysis
• B) Task analysis and analysis of historical data
• C) Budgetary analysis and data analysis
• D) Cost analysis and budgetary analysis

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Definitions:

Fixed Manufacturing Overhead

Indirect production costs that remain constant, regardless of the level of production output, such as salaries or rent.

Direct Labor-Hours

An accounting metric denoting the hours worked by employees directly involved in manufacturing goods or providing services, crucial for cost allocation and pricing.

Unused Capacity

Available but not currently utilized production or service capacity within a business.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries, and insurance.