In a traditional manufacturing accounting system, the standard cost of a unit of output is the sum of the standard costs of:
A) Direct material, direct labour, and variable overhead
B) Direct material, direct labour ,and fixed overhead
C) Direct material, direct labour, and period costs
D) Direct material, direct labour, variable overhead, and fixed overhead

Question

Quizplus · Accepted Answer

The standard cost of a unit of output in a traditional manufacturing accounting system includes the standard costs of direct material, direct labour, variable overhead, and fixed overhead. This comprehensive approach ensures that all costs associated with the production process are accounted for in the calculation of the unit cost.

In a Traditional Manufacturing Accounting System, the Standard Cost of a Unit