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Brightlites would then ensure that the variances between the standard price and the actual price paid would be minimal and have little impact on their actual production costs. Depending upon the situation, Brightlites could compete the requirement for a long-term fixed price type contract, which normally would result in overall lower prices...
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Depending upon the situation, Brightlites could compete the requirement for a long-term fixed price type contract, which normally would result in overall lower prices. Additionally, it is recommended to reevaluate the standard to ensure it contains the most current information. Although changing the standard should not be done every time raw materials is procured...
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