A manufacturing company would include setup and downtime in their direct
A) materials price standard.
B) materials quantity standard.
C) labor price standard.
D) labor quantity standard.

Question

Quizplus · Accepted Answer

Setup and downtime would affect the amount of time it takes for an employee to complete a task, and therefore, would impact the labor quantity standard. It would not directly impact the materials quantity or price standards, as those relate to the amount and cost of materials used in production. Similarly, it would not impact the labor price standard, which refers to the hourly rate paid to employees.

A Manufacturing Company Would Include Setup and Downtime in Their