A Price Standard Is the Price That Should Be Paid

question 75

True/False

A price standard is the price that should be paid per output unit for the input.A price standard is the price that should be paid for a specific quantity of input,not per output unit.

---

Definitions:

Incurred Costs

Expenses that a company has realized and recorded, regardless of cash payment status.

Manufacturing Overhead Costs

Expenses indirectly related to the manufacturing process, including maintenance of equipment, quality control, and facility rent.

Incurred Costs

Expenses that have been recognized or realized during a period, regardless of when cash payments are made.

Period Costs

Expenses not directly tied to production activities, usually administrative, selling, and other non-manufacturing costs.