The standard direct material cost is equal to:
A) Standard quantity × Actual price
B) Actual quantity × Standard price
C) Actual quantity × Actual price
D) Standard quantity × Standard price
E) None of the above

Question

Quizplus · Accepted Answer

The standard direct material cost is calculated by multiplying the standard quantity of materials that should be used for a product by the standard price of those materials. This gives a budgeted or expected cost under normal conditions, not influenced by actual price fluctuations or actual quantities used.

The Standard Direct Material Cost Is Equal To