Chapter 21, Problem 1BTN

To determine

Ethical Challenge:

The setting of material, price labor, and the overhead standard is a very challenging process for the management of a company. Low standards can let the company buy inferior products and the employees will not work to their full potential. High standards can be challenging for a company as the company will not be able to offer a product at a reasonable price. The employees can also be overburdened to fulfill that high standard. So, the manager has to face this challenge while setting a standard for a new product.

The specialists to provide information to help set the materials, price and quantity standards and the reason for choosing them.