The standard cost of direct material is the
A)standard price of direct material input × standard quantity of direct material inputs.
B)standard price of direct material input × actual quantity of direct material inputs.
C)actual price of direct material input × standard quantity of direct material inputs.
D)actual price of direct material input × actual quantity of direct material inputs.

Question

Quizplus · Accepted Answer

The standard cost of direct material is calculated by multiplying the standard price of direct material input by the standard quantity of direct material inputs. This represents the expected cost of the materials needed to produce a unit of product, based on predetermined standards for both price and quantity. Option B, C, and D are incorrect because they either use actual quantities or actual prices, which would not be representative of the standard cost.

The Standard Cost of Direct Material Is the