ECONOMICS

Detailed explanation-1: -Standard costing is technique of cost planning and control, based on scientific analysis of elements of cost in terms of standard input / output norms and standard rates / price per unit of input.

Detailed explanation-2: -Outsourcing is used frequently to control costs because many businesses find it cheaper to pay a third party to perform a task than to take on the work within the company.

Detailed explanation-3: -Standard costing is the practice of estimating the expense of a production process. It’s a branch of cost accounting that’s used by a manufacturer, for example, to plan their costs for the coming year on various expenses such as direct material, direct labor or overhead.

Detailed explanation-4: -Standard Costing is an integral part of the costing process within an organisation. It is a process that helps compare the revenues and actual cost of producing a good or service with the actual results to measure the variance and understand its reasons.