Asked by Hunter Gregory on May 14, 2024
Verified
Standard costs are preset costs for delivering a product or service under normal conditions.
Standard Costs
Predetermined costs for the production of goods or services, used as benchmarks against which actual costs are compared.
Normal Conditions
Usual or expected conditions under which a company operates, reflecting a standard or average level of activity.
- Familiarize oneself with the concept of standard costs and how they are applied.
Verified Answer
KH
Kevin HendricksMay 19, 2024
Final Answer :
True
Explanation :
This statement is true. Standard costs are predetermined costs that are used as benchmarks or targets for comparing actual costs in performance analysis. They are based on expected or typical levels of efficiency and productivity and are often used in budgeting and variance analysis.
Learning Objectives
- Familiarize oneself with the concept of standard costs and how they are applied.