A standard cost:
A) is the "true" cost of a unit of production.
B) is a budget for the production of one unit of a product or service.
C) can be useful in calculating equivalent units.
D) is normally the average cost within an industry.
E) is almost always the actual cost from previous years.

Question

Quizplus · Accepted Answer

A standard cost is a predetermined cost that serves as a budget for the production of one unit of a product or service, helping in cost control and variance analysis.

A Standard Cost