A Standard Cost Is a Unit Cost That

question 12

Multiple Choice

A standard cost is a unit cost that:

• A) the company attained in the most recently completed period
• B) should be attained
• C) should never be revised
• D) is the average cost for the industry

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Definitions:

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead to products or job orders, calculated before production begins based on budgeted costs and activities.

Finishing Department

The department in a manufacturing process where products undergo final operations, such as painting, polishing, or packaging, before being sold.

Direct Labor-Hour

A unit of measure for the time spent by workers on producing a specific number of goods.

Machining Department

A segment within a manufacturing facility where machining, a process of removing material from a workpiece to create desired shapes and features, takes place.