Which of the following best describes standard costs?
A)costs used as a budget for a single unit of product
B)costs incurred to produce a product
C)costs based on the average of current market values
D)costs used to compare with competitors' prices

Question

Quizplus · Accepted Answer

Standard costs are predetermined costs that are used as a budget for a single unit of product. They are based on estimates of the costs of materials, labor, and overhead, and are used to compare with actual costs to determine variances. Standard costs are not necessarily based on current market values or used to compare with competitors' prices.

Which of the Following Best Describes Standard Costs