Standard costs for production inputs are used to develop flexible budgets.

Question

Quizplus · Accepted Answer

Standard costs are an essential component in developing flexible budgets as they provide a benchmark for estimating costs and setting performance goals. Flexible budgets help to measure the actual costs against the standardized costs and adjust the budget as per the variation in the production inputs to minimize the variances. Therefore, the statement is true.

Standard Costs for Production Inputs Are Used to Develop Flexible