Question

Techniques used to set and assess Indirect and Expense Labor Standards include:

Answer 1

The techniques used for establishment of time standards for indirect and expense work includes PTS systems, time study and standard data and work sampling. But due to high degree of variability characteristics of most indirect and expense work, time will not allow using stopwatch studies for each and every standard developed. Standards are generally established using a combination of techniques depending on the nature of work. Other methods such as Monte Carlo simulation and queuing theory are often used to determine delays because of the waiting time in service facilities such as tool crib or stockroom