Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as

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The costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as standard costs. Standard costs include both variable and fixed costs and are used for comparison with actual costs to determine variances and identify areas for improvement. Semi-variable costs refer to costs that have both fixed and variable components, while variable costs vary with the level of production or sales. Fixed costs remain unchanged regardless of the level of production or sales.

Costs That Reflect What Costs Should Be for the Units