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Management · Q137

Management Accounting

Graduate and Post Graduate · Management · question 137

Q137

Standard input allows one unit, to be divided by standard cost per output unit for variable direct cost input, to calculate

A.
standard price per input unit
Answer
B.
standard price per output unit
C.
standard cost per input unit
D.
standard cost per output unit

Answer: Option A

Solution

Answer: Option A
Solution:
Standard input allows one unit, to be divided by standard cost per output unit for variable direct cost input, to calculate standard price per input unit. A standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or as the "should be" cost.