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Monce Catalan
on Nov 17, 2024

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Standard costs are divided into which of the following components?

A) variance standard and quantity standard
B) materials standard and labor standard
C) standard quality and standard quantity
D) standard price and standard quantity

Standard Costs

Predetermined cost estimates used to measure the cost performance of an operation, allowing for budgeting and variance analysis against actual costs.

Standard Price

A predetermined cost of a resource or product, used for budgeting and cost control purposes.

Standard Quantity

A predetermined amount of input that should be used in producing a unit of output.

  • Ascertain the significance of standards in the evaluation of price and quantity divergences concerning direct materials and direct labor.
  • Understand the separation of standard costs into two components for detailed variance analysis.
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JM
Jasmin MunozNov 21, 2024
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