Asked by Austin Vaughn on Jul 15, 2024
Verified
The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.
Direct Labor Standard
A benchmark for the amount of labor directly involved in producing a unit of output, used for budgeting and measuring efficiency.
- Identify the different categories of standards (optimal, presently achievable) and their uses.
- Acquire knowledge on the necessity and procedures for amending standard costs.
Verified Answer
TI
Tennille Irons
Jul 18, 2024
Final Answer :
False
Explanation :
The inability of workers to meet a direct labor standard does not necessarily mean that the standard is incorrect. Other factors such as poor training or inefficient work processes could also be contributing to the problem. It is important to investigate and address the root cause before changing the standard.
Learning Objectives
- Identify the different categories of standards (optimal, presently achievable) and their uses.
- Acquire knowledge on the necessity and procedures for amending standard costs.