Standard costs are divided into which of the following components?
A) variance standard and quantity standard
B) materials standard and labor standard
C) quality standard and quantity standard
D) price standard and quantity standard

Question

Quizplus · Accepted Answer

Standard costs are divided into price standard and quantity standard. The price standard refers to the expected cost of materials, labor, and overhead based on the expected price paid for each. The quantity standard refers to the expected quantity of materials, labor, and overhead required to produce a unit of output based on specified efficiency factors.

Standard Costs Are Divided into Which of the Following Components