Which department is responsible for setting price standards for materials and labour?
A)Personnel must consider discounts, freight, and quality.
B)Purchasing must consider payroll taxes, fringe benefits, and qualifications.
C)It is the joint responsibility of operations, purchasing, personnel, and accounting.
D)Purchasing must consider the quantity of materials.

Question

Quizplus · Accepted Answer

Setting price standards for materials and labor requires input from various departments. Operations, purchasing, personnel, and accounting must work collaboratively to consider factors such as quantity, quality, discounts, fringe benefits, payroll taxes, and qualifications. Therefore, it is the joint responsibility of these departments to set price standards. None of the other options provide enough comprehensive information or are accurate enough to be considered the best choice.

Which Department Is Responsible for Setting Price Standards for Materials