standard direct materials cost


standard direct materials cost
In standard costing, a standard cost derived from the standard quantity of materials allowed for the production of a product and the standard direct materials price for the materials specified for that product.

Big dictionary of business and management. 2014.

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  • standard direct materials cost — In standard costing, a standard cost derived from the standard quantity of materials allowed for the production of a product and the standard direct materials price for the materials specified for that product …   Accounting dictionary

  • direct materials price variance — In a standard costing system, a variance arising as part of the direct materials total cost variance. There are two alternative points at which the materials price variance may be established: when the material is purchased or when it is issued… …   Accounting dictionary

  • direct materials total cost variance — A combination of the direct materials price variance and the direct materials usage variance; it compares the actual cost and the standard cost of the direct material consumed in carrying out the actual production. The formula for this variance… …   Accounting dictionary

  • direct materials usage variance — In a standard costing system, a variance arising as part of the direct materials total cost variance. It compares the actual quantity of material used to carry out production with the standard quantity allowed, and values the difference at the… …   Accounting dictionary

  • standard cost allowance — Under a standard costing system, the level of expenditure allowed to be incurred for variable costs, taking into account the actual levels of activity achieved. For example, the standard cost allowance for direct materials is obtained from the… …   Accounting dictionary

  • standard cost allowance — Under a standard costing system, the level of expenditure allowed to be incurred for variable costs, taking into account the actual levels of activity achieved. For example, the standard cost allowance for direct materials is obtained from the… …   Big dictionary of business and management

  • Direct material usage variance — In variance analysis (accounting) direct material usage (efficiency, quantity) variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, and the actual quantity of… …   Wikipedia

  • Cost — This article is about the economic concept. For the scientific organization, see COST. For uses of The Cost , see The Cost (disambiguation). Expenditure redirects here. For personal consumption expenditure, see Consumption (economics). In… …   Wikipedia

  • Cost accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Cost of goods sold — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia