Standard labour time is the time officially allowed for completing a specific task or unit of work, determined by methods like work measurement. It serves as a benchmark for efficiency.
Let's examine each statement to determine which is true:
Analysis: This statement accurately defines standard labour time. It represents the measured and allowed duration, typically expressed in hours or fractions thereof, required to perform a defined task under specified conditions.
Analysis: While past experience can inform the process, standards are typically set through direct study (like time studies) and analysis, not solely based on historical data which might be inefficient or inaccurate. This statement is not the primary definition or requirement.
Analysis: This is false. Realistic standard times *must* include allowances for factors like worker fatigue, necessary machine adjustments (tool setting), and personal needs to ensure the standard is achievable and fair.
Analysis: This is false. Production managers possess crucial operational knowledge and are typically involved in setting realistic and achievable labour time standards.
Based on the analysis, the only true statement is the first one, which correctly defines standard labour time.
Which of the following is not a method of costing ?
Abnormal loss is equal to
Which of the following items is included in cost Accounts:
What will be the impact of normal loss on the overall per unit cost?
Job costing is also termed as ___________.