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ACCA Applied Knowledge · Management Accounting · Standard costing system

Which of the following items would normally be shown on a standard cost card for one unit of a product?

A standard cost card lists the standard quantity and standard price or rate for each input per unit, and totals them to the standard cost per unit. It is a planning benchmark, so it contains no actual costs or variances, which are only calculated afterwards.

  1. AThe standard quantity and standard price of each input, giving a standard cost per unitCorrect
  2. BThe actual cost of materials purchased in the last month
  3. CThe variance between budgeted and actual sales volume
  4. DThe cumulative actual overhead incurred to date

Explanation

A standard cost card sets out, for one unit of output, the standard quantity and standard price of each material, labour and overhead input, and totals them to a standard cost per unit. Actual costs and variances are outcomes recorded elsewhere, not part of the card.

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