In setting price standards for materials and labor,
A) the purchasing department must consider discounts, freight, and quality.
B) personnel must consider payroll taxes, fringe benefits, and qualifications.
C) it is the joint responsibility of operations, purchasing, personnel, and accounting.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Setting price standards for materials and labor requires consideration of various factors such as discounts, freight, quality, payroll taxes, fringe benefits, qualifications, and more. Therefore, the joint responsibility of operations, purchasing, personnel, and accounting is required to establish fair and accurate price standards.

In Setting Price Standards for Materials and Labor