A "standard cost" is a predetermined amount (e.g., cost) that:
A) Should be incurred under relatively efficient operating conditions.
B) Will be incurred for an operation or a specific objective.
C) Must occur for an operation or a specific objective.
D) Cannot be changed once it is established by management.
E) Is useful for planning and control, but not for inventory valuation purposes.

Question

Quizplus · Accepted Answer

A standard cost is a predetermined amount that should be incurred under efficient operating conditions.

A "Standard Cost" Is a Predetermined Amount (E