The fixed direct manufacturing cost is calculated, by multiplying standard prices for standard quantity of allowed input for actual output in ___________?

Correct answer: C. standard costing

  • A. input costing
  • B. output costing
  • C. standard costing
  • D. achieved costing

Explanation

Standard costing calculates cost by applying standard prices to the standard quantity of input allowed for the actual output. This provides a benchmark for comparing actual performance with standards.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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