Standard costs are:

Question

Standard costs are:

Quizplus · Accepted Answer

Standard costs are predetermined costs that are expected to be incurred under normal conditions for producing a product or service. They provide a benchmark for evaluating actual costs and performance against the expected levels. These costs may differ among companies within the same industry based on factors such as production methods, materials used, and level of automation. Therefore, they are not uniform or established by any regulatory authority such as the IMA. While actual costs may differ from standard costs due to various factors, the aim is to achieve the standards wherever possible to maintain profitability and competitiveness.

Standard Costs Are