ACCT 2230 Lecture Notes - Lecture 8: Unemployment Benefits, Unit, Bookkeeping
27 Dec 2015
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Setting standard prices/costs: combines expertise of everyone responsible for purchasing/using inputs efforts by average employee. employees to work at 100% peak ef ciency at all times. accountants, engineers, purchasing agents, production managers etc. Ideal standards: can only be attained under the best circumstances; requires. Practical standards: tight but attainable requires reasonable but highly ef cient. Standard price per unit: nal, delivered cost of materials, net of discounts including. Standard quantity per unit: amount of material required for each unit + allowance for unavoidable waste/spoilage/normal inef ciencies shipping, receiving & other such costs including employment insurance, employee bene ts, other labour costs. Standard rate per hour: labour rate that should be incurred per hour of labour time . Standard hours per unit: use time & motion studies for each labour operation . Price standards: rate is variable portion of predetermined overhead rate.
