COMM 112 Chapter Notes - Chapter 10: Unemployment Benefits, Statistical Process Control, Standard Cost Accounting
Document Summary
A system of management in which standards are set for various operating activities that are then periodically compared to actual results: any differences that are deemed significant are brought to the attention of management as exceptions". A detailed listing of the standard amounts of materials, labour and overhead that should go into a unit of product or service, multiplied by the standard price or rate that has been set for each cost element. Standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times. Standards that allow for normal machine downtime and other work interruptions and can be attained through reasonable, although highly efficient, efforts by the average employee. The price that should be paid for a single unit of materials, including shipping, receiving and other such costs, net of any discounts allowed.
