Question
The Chocolate Cow Ice Cream Company has grown substantially recently, and management now feels the need to develop standards and compute variances. A consulting firm
The Chocolate Cow Ice Cream Company has grown substantially recently, and management now feels the need to develop standards and compute variances. A consulting firm was hired to develop the standards and the format for the variance computation. One standard in particular that the consulting firm developed seemed too excessive to plant management. The consulting firm's standard was production of 100 gallons of ice cream every 45 minutes. The plant's middle level of management thought the standard should be 100 gallons every 55 minutes, while top management of the company thought that the consulting firm's standard would provide more motivation to the employees.
IN ONE OR TWO PARAGRAPHS explain what are some factors the company should consider before selecting one of the proposed standards?
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