ECONOMICS

Detailed explanation-1: -The objective of the standard costing and budgeting is to achieve maximum efficiency and cost control. Under both the systems actual performance is compared with predetermined standards, deviations, if any, are analysed and reported.

Detailed explanation-2: -The purpose of standard costing is to control cost and promote efficiency.

Detailed explanation-3: -to provide a distinct measure of cost control . The advantages of using standard cost system is that it is used for product costing for cost control and for making decisions.

Detailed explanation-4: -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.