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

Question

Quizplus · Accepted Answer

Setup and downtime involve the amount of time workers spend on a task, and therefore affect the labour quantity standard. They do not directly affect materials, so options A and B are incorrect. Labour price standard is the rate at which workers are paid, and setup and downtime do not affect this rate, so C is also incorrect.

A Manufacturing Company Would Include Setup and Downtime in Their