In order to reduce costs so as to reach the desired target cost,Quality Chairs should also focus on reducing the cost of:
A)Direct materials.
B)Direct labor.
C)Machine setups.
D)Mechanical assembly.
Materials,machine hours and finish/pack are all under budget;labor hours are over budget.

Question

Quizplus · Accepted Answer

Since labor hours are over budget, reducing the cost of direct labor would help to reach the target cost. Materials, machine setups, and mechanical assembly costs are all under budget, so focusing on those areas would not have as much of an impact on reducing costs.

In Order to Reduce Costs So as to Reach the Desired