Standard costing is extremely useful when unique, high cost products are produced, as compared to the production of multiple products.

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Standard costing is typically more useful when producing a large volume of relatively homogeneous products, rather than unique or customized items where costs may vary significantly with each order. Standard costing involves setting predetermined costs for materials, labor, and overhead, and then comparing these standards to actual costs to identify variances and analyze performance. This process can be more challenging with unique or variable products where there may not be clear benchmarks for comparison.

Standard Costing Is Extremely Useful When Unique, High Cost Products