COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a standard production cost is ____
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Standard raw material costs
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Standard administration fee
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Standard factory overhead
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Standard labor cost
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Explanation:
Detailed explanation-1: -A standard costing system does not tell the selling price of a unit to be sold.
Detailed explanation-2: -A standard cost is a predetermined unit cost based on expected direct materials quantities and expected direct labour time, and priced at a predetermined rate per unit of direct materials and rate per direct labour hour and rate per hour of overhead.
Detailed explanation-3: -Standard costs are estimates of the cost of goods sold–that is, the cost required to produce your products. They usually consist of three parts: direct materials, direct labor, and manufacturing overhead.
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