The terms "standard quantity allowed" or "standard hours allowed" mean:
A) the actual output in units multiplied by the standard output allowed.
B) the actual input in units multiplied by the standard output allowed.
C) the actual output in units multiplied by the standard input allowed.
D) the standard output in units multiplied by the standard input allowed.

Question

Quizplus · Accepted Answer

The terms "standard quantity allowed" or "standard hours allowed" refer to the expected amount of an input (typically materials or labor hours) that should be used to produce a certain level of output, based on predetermined standards or benchmarks. Therefore, the correct calculation would be the actual output (in units) multiplied by the standard input (in units), which is represented by choice C. Choices A, B, and D do not accurately reflect this concept.

The Terms "Standard Quantity Allowed" or "Standard Hours Allowed" Mean