Standard cost per output unit for each variable direct cost input is calculated by multiplying ________.
A) standard input allowed for one output unit by standard price per input unit
B) standard input allowed for one output unit by actual price per input unit
C) actual input allowed for one output unit by standard price per input unit
D) actual input allowed for one output unit by actual price per input unit

Question

Quizplus · Accepted Answer

Standard cost per output unit for each variable direct cost input is calculated by multiplying standard input allowed for one output unit by standard price per input unit. This is because standard cost is based on predetermined standards for inputs and prices, and multiplying the standard input and price gives the standard cost per unit.

Standard Cost Per Output Unit for Each Variable Direct Cost