As with standard material cost, standard labor cost is determined for an Activity Specification, not for the actual Activity. Figure 16-9 shows that the labor expected to be required to carry out Activities described by an Activity Specification is its Standard Labor Requirement—the fact that a particular number of hours of labor are required to complete any Activity that is an example of a particular Activity Specification. Specifically required are People who possess a particular Skill, or who have appropriate values for a particular Party Characteristic.

That is, each Standard Labor Requirement must be for an Activity Specification, and must be either for the delivery of a Skill (such as “woodworking” or “project management” ...

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