ECONOMICS

Detailed explanation-1: -Standard costing cannot be applied easily to non-repetitive activities because there is no clear basis for observing and recording operations. It is difficult to determine a clear standard. Two commonly used approaches are used to set standard costs.

Detailed explanation-2: -4. It is not suitable for industries producing non-standardized products. It is of little value in job or contract costing. Also it is difficult to apply this system when production takes more than one accounting period.

Detailed explanation-3: -Answer and Explanation: Option (D) is the correct answer. Standard cost is used as the tool for measuring efficiency for controlling the cost of production. Standard cost is part of the cost accounting process.

Detailed explanation-4: -Standard costing’s most significant drawbacks are that it does not apply to all businesses or types of products; its method of cost determination is difficult, laborious, and time-consuming; and it necessitates the assistance of knowledgeable professionals. There is no doubt that standard costing has its limitations.

Detailed explanation-5: -A standard costing system does not tell the selling price of a unit to be sold.