Question: Which of the following is NOT a component of a standard cost system?
Options:
Direct materials standard
Direct labor standard
Variable overhead standard
Actual cost incurred
Correct Answer: Actual cost incurred
Solution:
Actual cost incurred is not a component; standard costs are predetermined.
Which of the following is NOT a component of a standard cost system?
Practice Questions
Q1
Which of the following is NOT a component of a standard cost system?
Direct materials standard
Direct labor standard
Variable overhead standard
Actual cost incurred
Questions & Step-by-Step Solutions
Which of the following is NOT a component of a standard cost system?
Step 1: Understand what a standard cost system is. It is a method used by companies to estimate the expected costs of production.
Step 2: Identify the components of a standard cost system. These typically include standard costs for materials, labor, and overhead.
Step 3: Recognize that actual costs are the real expenses incurred during production, which can differ from standard costs.
Step 4: Determine which option does not belong to the standard cost system. Since actual costs are not predetermined, they are not a component of a standard cost system.
No concepts available.
Soulshift Feedback×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy?
