Which of the following would generally not be a cause to adjust standard cost rates in a service industry?
A)wage rate increase for the cleaners
B)electricity charges from the municipality
C)salary increases for management
D)cleaning supplies increases from suppliers

Question

Quizplus · Accepted Answer

Salary increases for management would not be a cause to adjust standard cost rates in a service industry because management costs are usually not included in the cost of the service provided. The other options could all impact the cost of providing the service and would require adjustment to the standard cost rates.

Which of the Following Would Generally Not Be a Cause