To determine the unit standard cost for a particular input, a company must decide how much
A)input should be used per unit of output and how much should be paid for the quantity of the input to be used.
B)input should be used per unit of output and how much output should be produced.
C)output should be produced and how much should be paid for each unit produced.
D)should be paid for the quantity of the input to be used and how much input should be purchased.

Question

Quizplus · Accepted Answer

To determine the unit standard cost for a particular input, a company must determine the quantity of input to be used per unit of output (the input standard) and how much should be paid for the quantity of input to be used (the input price). Therefore, option A is the correct choice. Option B only takes into account the input standard and ignores the input price. Option C only considers the output to be produced and ignores both the input standard and input price. Option D only takes into account the input price and ignores the input standard.

To Determine the Unit Standard Cost for a Particular Input