Which of the following best describes the concept of standard costs?
A) They are the costs that should be incurred per unit of finished goods inventory.
B) They are the costs that are actually incurred per unit of finished goods inventory.
C) When using standard costs, unallocated overhead is capitalized.
D) Standard costs are always acceptable for reporting purposes.

Question

Quizplus · Accepted Answer

Standard costs are predetermined costs that should be incurred per unit of finished goods inventory. They are used as a benchmark for comparison with actual costs and help managers monitor and control costs.

Which of the Following Best Describes the Concept of Standard