A quantity standard is:
A)the total dollar amount that a company expects to spend to achieve a given level of output.
B)a form that shows what the company should spend to make a single unit of product.
C)the price that should be paid for a specific quantity of input.
D)the amount of input that should be used in each unit of product or service.

Question

Quizplus · Accepted Answer

A quantity standard specifies the amount of input that should be used in each unit of product or service. It is used to calculate the quantities of materials, labor, and overhead needed to produce a given level of output. This helps companies to set production goals, manage costs, and improve efficiency.

A Quantity Standard Is