Which of the following is a reason companies use standard costs?
A) to enhance customer loyalty
B) to set sales prices of products and services
C) to share best practices with other companies
D) to ensure the accuracy of the financial records

Question

Quizplus · Accepted Answer

Setting sales prices of products and services is a reason companies use standard costs, as it helps in budgeting and setting benchmarks for costs, which in turn aids in pricing decisions.

Which of the Following Is a Reason Companies Use Standard