Setting standard costs is a function of the company's production department and does not require input from other departments.

Question

Quizplus · Accepted Answer

Setting standard costs is a cross-functional process that involves input from not just the production department, but also other departments such as finance, purchasing, and sales. The production department may play a lead role in the process, but collaboration with other departments ensures that accurate costs are assigned to each component of the product or service.

Setting Standard Costs Is a Function of the Company's Production