The standard cost of direct material is the
A)standard price of direct material input x standard quantity of direct material inputs.
B)standard price of direct material input x actual quantity of direct material inputs.
C)actual price of direct material input x standard quantity of direct material inputs.
D)Actual price of direct material input x actual quantity of direct material inputs.

Question

Quizplus · Accepted Answer

The standard cost of direct material is the expected cost of the materials required to produce one unit of a product, which is calculated by multiplying the standard price of the direct material input by the standard quantity of the direct material inputs needed for one unit. Therefore, choice A is correct. The actual quantity and price of the material inputs are used to determine the actual cost of direct materials, which is different from the standard cost.

The Standard Cost of Direct Material Is the