Asked by
Kristen Jovanovski
on Oct 10, 2024
Verified
The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period.
Standard Quantity
The expected quantity of materials or labor hours needed to produce a unit of product, set during the budgeting or planning process.
Standard Hours Allowed
The amount of time that should have been taken to complete a task or produce a certain quantity of goods, based on predetermined standards.
Actual Output
Refers to the actual quantity of goods or services produced by a company, differentiating from planned or projected output.
- Understand the significance of adhering to standards in the contexts of budgeting and variance analysis.
- Understand the importance of activity levels in cost management and the creation of adaptable budgets.
Verified Answer
DK
Learning Objectives
- Understand the significance of adhering to standards in the contexts of budgeting and variance analysis.
- Understand the importance of activity levels in cost management and the creation of adaptable budgets.