COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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he unit cost of products incurred at the start of a particular period
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The average unit cost of products produced in the previous period
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The planned unit cost of products produced during a particular period
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The average unit cost of products produced during a particular period
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Detailed explanation-1: -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-2: -A standard cost is the budgeted cost of a regular manufacturing process against which actual costs are compared. Of course, if a new product, service, or process is to be carried out, the initial standard costs will have to be estimated.
Detailed explanation-3: -A predetermined dollar amount that one unit of a finished product should cost during an accounting period.
Detailed explanation-4: -Standard unit cost method is one of the asset cost allocation methods that is used to allocate common and indirect costs to different assets. For example, you can allocate amounts such as salaries, administrative overhead, and equipment charges across several assets.