Standard costs for company products are typically used for all except which of the following?
A) Variance analysis and cost control
B) Computing production costs in operating budgets
C) Determining actual costs per unit
D) Determining the cost of goods completed and transferred to finished goods inventory

Question

Quizplus · Accepted Answer

Standard costs are predetermined costs that are used as a basis for comparison with actual costs to determine variances. They are used for variance analysis and cost control, computing production costs in operating budgets, and determining the cost of goods completed and transferred to finished goods inventory. However, they are not used for determining actual costs per unit. Actual costs are determined by multiplying the actual quantities of inputs used by their actual prices.

Standard Costs for Company Products Are Typically Used for All