Asked by TEENA GAUTAM on Jul 18, 2024
Verified
Standard cost is the industry average cost for a particular item.
Standard Cost
A predetermined cost of manufacturing, serving, or marketing an item, which includes direct labor, direct material, and overhead charges.
Industry Average
A benchmark or norm for a specific industry, calculated as the average of a significant metric (like return on investment) across similar companies.
- Acquire knowledge on the elementary notions and definitions pertinent to standard costing, incorporating aspects like direct labor, efficiency criteria, and standard charges.
Verified Answer
AA
Aleesha ArmstrongJul 21, 2024
Final Answer :
False
Explanation :
Standard cost is not the industry average cost for a particular item. It is a predetermined cost that a company expects to incur during the production process based on factors such as direct materials, labor, and overhead.
Learning Objectives
- Acquire knowledge on the elementary notions and definitions pertinent to standard costing, incorporating aspects like direct labor, efficiency criteria, and standard charges.