When developing a perfection standard for direct labour, a manager should include which of the following?
I Labour on-costs
Ii Occasional inefficiencies and machine breakdowns
Iii A minimal acceptable idle time
A) i
B) i and ii
C) iii
D) i and iii

Question

Quizplus · Accepted Answer

Labour on-costs should be included in a perfection standard for direct labour as they are part of the total cost of employing labour, including items such as employer's national insurance contributions, pension costs, and other benefits. Occasional inefficiencies and machine breakdowns, as well as a minimal acceptable idle time, are not part of a perfection standard, which aims for an ideal or optimal scenario without considering inefficiencies or idle time.

When Developing a Perfection Standard for Direct Labour, a Manager