Asked by Rachel Romero on Apr 25, 2024
Verified
The standard price per unit for direct materials should reflect the final, delivered cost of the materials.
Standard Price
A predetermined cost assigned to materials, labor, and overhead used in budgeting and variance analysis.
Direct Materials
Components that are directly associated with the creation of a product and form a crucial part of the completed item.
- Learn the utilization of quantity and price criteria in regulating the costs of materials and labor.
Verified Answer
KH
Kimberly Hernández7 days ago
Final Answer :
True
Explanation :
The standard price per unit for direct materials should be based on the final, delivered cost of the materials, which includes all costs associated with purchasing, receiving and bringing the materials to the production facility. This ensures that the standard cost of the finished product accurately reflects the true cost of the materials used in production.
Learning Objectives
- Learn the utilization of quantity and price criteria in regulating the costs of materials and labor.