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

Correct answer: A. standard price per input unit

  • A. standard price per input unit
  • B. standard price per output unit
  • C. standard cost per input unit
  • D. standard cost per output unitHire An Accountant

Explanation

Dividing the standard cost per output unit by the standard input quantity required per output unit gives the standard price per input unit. This converts a cost stated per finished unit into a rate for the input consumed.

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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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