Asked by
Chetna Juneja
on Nov 17, 2024
Verified
While setting standards, managers should never allow for spoilage or machine breakdowns in their calculations.
Spoilage
The portion of raw materials or inventory that becomes unusable or unsellable during production.
Machine Breakdowns
Instances when machinery or equipment fails to operate, causing interruptions in production or operations.
- Ascertain the responsibilities of accountants and managers in the formulation of cost standards.
- Understand the various kinds of standards (perfect, currently obtainable) and where they apply.
Verified Answer
SH
Learning Objectives
- Ascertain the responsibilities of accountants and managers in the formulation of cost standards.
- Understand the various kinds of standards (perfect, currently obtainable) and where they apply.
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