The anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are:
A)Variable costs.
B)Fixed costs.
C)Standard costs.
D)Product costs.
E)Period costs.

Question

Quizplus · Accepted Answer

Anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are called standard costs. Standard costs include both variable and fixed costs and are used for budgeting and performance evaluation purposes. Product costs and period costs are broader categories that include all costs associated with manufacturing a product or operating a business, while standard costs are more specific and focused on the costs associated with a particular product or service.

The Anticipated Costs Incurred Under Normal Conditions to Produce a Specific