Standard costing uses a predetermined rate for both direct and indirect costs to assign manufacturing costs to products.

Name: Standard costing uses a predetermined rate for both direct and indirect costs to assign manufacturing costs to products.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Standard costing involves assigning both direct costs (like materials and labor) and indirect costs (overhead) to products using predetermined rates, which helps in budgeting and cost control.

Standard Costing Uses a Predetermined Rate for Both Direct and Indirect