What is a standard cost?
A) The total number of units times the budgeted amount expected
B) Any amount that appears on a budget
C) The total amount that appears on the budget for product costs
D) The amount management thinks should be incurred to produce a good or service

Question

Quizplus · Accepted Answer

A standard cost is the expected or budgeted cost that management believes should be incurred to produce a good or service. It serves as a benchmark for actual costs, allowing for variances to be analyzed and addressed. Choices A, B, and C are too general or inaccurate to be considered the best choice.

What Is a Standard Cost