Which of the Following Is True

question 26

Multiple Choice

Which of the following is true?

• A)In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.
• B)A direct labour price standard is frequently called the direct labour efficiency standard.
• C)The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.
• D)The direct materials price standard should be based on the production department's best estimate of the cost of raw material.

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Definitions:

Ground

Often refers to the reference point in an electrical circuit from which voltages are measured, a common return path for electric current, or a direct physical connection to the Earth.

Perimeter

The total distance around the edge of a geometric figure or shape.

Rectangle

A four-sided flat shape with straight sides where every interior angle is a right angle (90 degrees).

Square Meters

A metric unit of area equal to the area of a square measuring one meter on each side.