Franklin Industries CEO was talking with the CFO about the appropriate standard cost to use for the
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Franklin Industries’ CEO was talking with the CFO about the appropriate standard cost to use for the new product being launched in the coming year. The CEO argued that standard cost based on ideal performance would enable profits to be maximised through improved efficiency. The CFO argued, however, that the standard cost should be based on attainable performance or recent average historical performance.
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Briefly comment on which standard cost is best for Franklin Industries to use in developing the standard cost for the new product.
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Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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