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

Question

Quizplus · Accepted Answer

Standard costs are the anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service. These costs are used for planning and control purposes and are based on expected levels of efficiency and cost. Fixed costs are the costs that remain constant regardless of the level of production or services provided, while variable costs vary with changes in production or service levels. Product costs are the costs directly incurred in the production of a product, such as material and labor costs. Period costs are the costs that are not directly related to the production of a product, such as salaries and marketing expenses.

The Anticipated Costs Incurred Under Normal Conditions to Produce a Specific