Standard costs for company products are typically used for all except
A)variance analysis and cost control.
B)computing production costs in operating budgets.
C)determining the actual cost of direct materials and direct labor used in production.
D)comparing the production costs for performance measurement purposes.

Question

Quizplus · Accepted Answer

Standard costs are pre-determined costs that are used to estimate the cost of materials, labor, and overhead for a product. They are not used to determine the actual cost of direct materials and direct labor used in production. Instead, actual costs are recorded and compared to the standard costs to identify variances that can be analyzed and controlled. Standard costs are used for budgeting, performance measurement, and cost control purposes.

Standard Costs for Company Products Are Typically Used for All