Question

Standard cost per unit is calculated as ______.

A. standard rate per hour multiplied by standard time
B. standard price multiplied by standard quantity
C. standard quantity divided by standard price
D. service units used divided by available service units

Answer 1

option B

Step-by-step explanation:

the correct answer is option B

Standard cost per unit can be calculated by multiplication of standard price with the standard quantity.

It can be explained with an example

Assume standard price of a laptop be $1000 and the standard quantity of the laptop be 8 then standard cost per unit head is

= $1000 × 8

= $ 8000

$ 8000 is the standard cost per unit.