In a Traditional Manufacturing Accounting System, the Standard Cost of a Unit

question 82

Multiple Choice

In a traditional manufacturing accounting system, the standard cost of a unit of output is the sum of the standard costs of

• A) Direct material, direct labor, and variable overhead
• B) Direct material, direct labor, and fixed overhead
• C) Direct material, direct labor, and period costs
• D) Direct material, direct labor, variable overhead, and fixed overhead

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Definitions:

Seventh Unit

Refers to the specific instance or item in a sequence or set, used here as a way to denote its particular position.

Utility Schedule

A table that shows the level of satisfaction or utility that a consumer derives from consuming different quantities of a good or service.

Marginal Utility

The extra pleasure or benefit a consumer receives from having one additional unit of a product or service.

Pepsi

A global brand of carbonated soft drinks produced and manufactured by PepsiCo.