ECONOMICS

Detailed explanation-1: -Question: 11)A standard cost: is the “true” cost of a unit of production. is a budget for the production of one unit of a product or service . can be useful in calculating equivalent units. is normally the average cost within an industry. is almost always the actual cost from previous years.

Detailed explanation-2: -The term standard cost refers to a specific cost per unit. Budgeted cost refers to costs in total given a certain level of activity. Standard variable production costs. These standard costs can then be used to establish a flexible budget based on a given level of activity.

Detailed explanation-3: -Standard costs are estimates of the cost of goods sold–that is, the cost required to produce your products. They usually consist of three parts: direct materials, direct labor, and manufacturing overhead.

Detailed explanation-4: -Standard cost is used to identify the variances between the actual cost incurred and the cost that should have occurred to produce the goods in normal conditions. Standard cost is a predetermined cost.

Detailed explanation-5: -A standard cost is a predetermined unit cost based on expected direct materials quantities and expected direct labour time, and priced at a predetermined rate per unit of direct materials and rate per direct labour hour and rate per hour of overhead.