The Input Standard Cost Per Completed Unit May Be Calculated

question 187

Multiple Choice

The input standard cost per completed unit may be calculated by

• A)multiplying the budgeted number of outputs for one input by the budgeted price per output unit.
• B)multiplying the budgeted price per input by the budgeted number of inputs for one unit of output.
• C)dividing the variable price per input by the budgeted number of inputs for one unit of output.
• D)dividing the budgeted number of outputs for one input by the budgeted price per output unit.
• E)dividing the budgeted price per input by the budgeted number of inputs for one unit of output.

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Definitions:

Work in Process Inventory

Goods that are partially completed in manufacturing but not yet ready for sale, reflecting a stage between raw materials and finished goods.

Supplies Inventory

Items held in stock by a business, such as office supplies or maintenance materials, not directly used in manufacturing but necessary for operations.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.

Direct Labor Hours

The total hours of labor spent by workers who are directly involved in the manufacturing process of a product.