The direct materials quantity standard should
A) exclude unavoidable waste.
B) exclude quality considerations.
C) allow for normal spoilage.
D) always be expressed as an ideal standard.

Question

Quizplus · Accepted Answer

The direct materials quantity standard should allow for normal spoilage, which is the expected and unavoidable loss of materials during the production process. This should be included in the standard in order to avoid setting unrealistic or unattainable targets for material usage. However, the standard should exclude any avoidable waste and should still take quality considerations into account. The standard can be expressed as either an ideal standard (theoretical maximum) or a practical standard (achievable target).

The Direct Materials Quantity Standard Should