Standard cost per unit is calculated as:
A) standard rate per hour multiplied by standard time.
B) standard price multiplied by standard quantity.
C) standard quantity divided by standard price.
D) service units used divided by available service units.

Question

Quizplus · Accepted Answer

Standard cost per unit is calculated by multiplying the standard price with the standard quantity. This is because the standard cost is the estimated cost of producing one unit of a product or service, which is determined by multiplying the standard price, or the cost of each individual input, with the standard quantity, or the amount of each input required to produce one unit of output.

Standard Cost Per Unit Is Calculated As