Which of the following is true?
A)In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.
B)A direct labour price standard is frequently called the direct labour efficiency standard.
C)The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.
D)The direct materials price standard should be based on the production department's best estimate of the cost of raw material.

Question

Quizplus · Accepted Answer

Developing a standard cost for direct materials requires consideration of both price and quantity factors. It is important to determine the standard cost of one unit of material based on the expected quantities to be used, as well as the cost per unit of material.

Which of the Following Is True