January 2018
Intermediate to advanced
480 pages
236h 9m
English
Managers use work standards in the following ways:
Establishing Prices and Costs. Managers can use labor and machine time standards to develop costs for current and new products, create budgets, determine prices, and arrive at make-or-buy decisions.
Motivating Workers. Standards can be used to define a day’s work or to motivate workers to improve their performance. For example, under an incentive compensation plan, workers can earn a bonus for output that exceeds the standard.
Comparing Alternative Process Designs. Time standards can be used to compare different routings for an item and to evaluate new work methods and new equipment.
Scheduling. Managers need time standards to assign tasks to workers and machines in ways that effectively ...