Which of the following yields the standard direct material cost?
A)Multiplying the standard price of direct materials by the standard quantity for direct materials
B)Adding the standard price of direct materials to the standard quantity for direct materials
C)Multiplying the actual price of direct materials by the actual quantity for direct materials
D)Adding the actual price of direct materials to the actual quantity for direct materials

Question

Quizplus · Accepted Answer

The standard direct material cost is calculated by multiplying the standard price of direct materials by the standard quantity for direct materials. This gives us the expected cost of the direct materials used in production based on the predetermined standards set by the company.

Which of the Following Yields the Standard Direct Material Cost