Allowance for spoilage is part of the direct
A)materials price standard.
B)materials quantity standard.
C)labour price standard.
D)labour quantity standard.

Question

Quizplus · Accepted Answer

Allowance for spoilage is a cost component of materials and is not related to labor expenses. It is included in the materials quantity standard to account for waste or damage that may occur during the production process. This allowance is usually determined based on historical data or industry norms and is factored into the overall cost of materials used in the production process. Therefore, the best choice is B) materials quantity standard.

Allowance for Spoilage Is Part of the Direct