Which of the Following Statements Regarding the Standard Cost for Direct

question 63

Multiple Choice

Which of the following statements regarding the standard cost for direct materials is true?

• A) It would be used on a static budget but not a flexible budget.
• B) It would consist of two components - a standard quantity and a standard price.
• C) It must be determined after materials are purchased for the year.
• D) It can not be determined if a company uses a just-in-time inventory system.

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Definitions:

Agrarian Nation

Refers to a country or society primarily based on agriculture and farming as the main source of livelihood and economic activity.

Benjamin Banneker

An African American almanac author, surveyor, naturalist, and farmer known for his contributions to the planning of Washington, D.C., and advocacy for racial equality in the late 18th century.

National Capital

The city or town that functions as the seat of government and administrative center of a country or region, often housing the head of the government and other key state institutions.