CAF-5 · Chapter 10 · Question 4 of 10
A company's finished product requires a net weight of 4.5 kg of direct material. However, the production process normally suffers a 10% material loss during processing. What is the standard quantity of raw material input required per unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 5.00 kg
Explanation
To find the input quantity when there is a normal loss, you divide the net output required by the yield percentage. Since normal loss is 10%, the yield is 90% (or 0.90). Standard Input = 4.5 kg / 0.90 = 5.00 kg.
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