Asked by JAVARIN OTHONG on Jul 07, 2024
Verified
To measure controllable production inefficiencies, which of the following is the bes? basis for a company to use in establishing the standard hours allowed for the output of one unit of product?
A) The hours per unit that would be required for the present workforce to satisfy expected demand over the long run.
B) Average historical performance for the last several years.
C) Engineering estimates based on attainable performance.
D) Engineering estimates based on ideal performance.
Standard Costing
A cost accounting method that assigns fixed overhead costs to goods produced based on standard cost rates, helping to analyze variances between expected and actual costs.
Direct Labour Hours
The total hours worked by production employees that are directly involved in the manufacturing process.
- Understand the concept of standard hours and how they relate to productivity and efficiency in manufacturing.
Verified Answer
SW
Shannon WilliamsJul 09, 2024
Final Answer :
C
Explanation :
Engineering estimates based on attainable performance provide a realistic and achievable benchmark for measuring controllable production inefficiencies, balancing efficiency and practicality.
Learning Objectives
- Understand the concept of standard hours and how they relate to productivity and efficiency in manufacturing.
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