Asked by
DIANAROSE LISBOS
on Nov 17, 2024Verified
Standard direct materials costs are determined by multiplying the standard price by the standard quantity.
Standard Direct Materials Costs
The budgeted or standard cost of the raw materials required to produce a unit of product.
Standard Price
A predetermined cost that companies use to budget and evaluate the performance of actual costs.
Standard Quantity
The established amount of materials or inputs expected to be used in the production of a good or service.
- Pinpoint the role of standards in scrutinizing discrepancies in price and quantity related to direct materials and direct labor.
Verified Answer
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Learning Objectives
- Pinpoint the role of standards in scrutinizing discrepancies in price and quantity related to direct materials and direct labor.