The standard cost of direct materials per unit is calculated by
A)multiplying the standard quantity of direct materials by the standard price of direct materials.
B)dividing the standard quantity of direct materials by the standard price of direct materials.
C)adding the standard quantity of direct materials to the standard price of direct materials.
D)multiplying the actual quantity of direct materials by the standard price of direct materials.

Question

Quizplus · Accepted Answer

The standard cost of direct materials per unit is calculated by multiplying the standard quantity of direct materials by the standard price of direct materials. This is because the standard cost is the expected cost of producing each unit of product, and it takes into account both the quantity and price of direct materials that are required to make the product.

The Standard Cost of Direct Materials Per Unit Is Calculated