Question

Select a product with which you are familiar. Describe what types of standard (direct material and direct labor) might be in effect for the product wherever it is produced. For each of these standards, discuss how those standards may become outdated. How frequently would you think the company need to evaluate each of the standards? **Please use different example of the ones we have here

Answer 1

The type of standard which is required for one bottle of perfume would be direct labor and direct material estimated as Standard Quantity or Rate Standard Cost or Hours Standard Price. For instance:

--Direct materials (in form of using juices from flowers) 7.2 ounces $ 2.50 per ounce $ 18.00 for one bottle
--Direct labor 0.4 hours $ 10.00 per hour $ 4.00 for one bottle

And these two would be the basic required elements of the product to be standardized wherever these are produced.

Direct material for making perfume may become outdated when chemically made essence are used. Direct material for making perfume may become outdated when such perfume is directly manufactured through advanced innovative technology (Machines and equipment). For product such as perfume, the standard material won’t change much as the quantity would remain the same. The standard material would vary more frequently as the updated technological adaptation takes place.