The final decision for setting standard costs should be is the responsibility of
A)the quality control engineer.
B)the managerial accountants.
C)the purchasing agent.
D)management.

Question

Quizplus · Accepted Answer

The final decision for setting standard costs should be the responsibility of management, as they have overall responsibility and accountability for the organization's performance. Making decisions regarding standard costs is an important managerial function that requires careful consideration of various factors, such as material costs, labor costs, overhead costs, production volumes, and expected levels of efficiency. Therefore, it is imperative that management sets the standard costs in order to achieve the desired performance goals and objectives of the organization. The quality control engineer, purchasing agent, and managerial accountants may provide expertise and input, but the final decision should rest with management.

The Final Decision for Setting Standard Costs Should Be Is