Which of the following best describes a standard?
A) a sales price, cost, or quantity that is expected under normal conditions
B) costs incurred to produce a product
C) budgeted amount for total product cost
D) actual sales price, cost, or quantity

Question

Quizplus · Accepted Answer

A standard is a predetermined expectation of a sales price, cost, or quantity that is expected under normal conditions. It serves as a benchmark for comparing actual performance and can be used for budgeting and planning purposes.

Answer: C
 A standard can also refer to the budgeted amount for total product cost, which includes both variable and fixed costs. This serves as a guideline for determining the selling price and achieving profitability.

Which of the Following Best Describes a Standard