ECONOMICS

Detailed explanation-1: -What is a standard cost? The amount management thinks that should be incurred to produce a good or service. budgets are a total amount and standards are a unit amount. are predetermined units costs which companies use as measures of performance.

Detailed explanation-2: -Standard Cost: Standard Cost is the amount or cost that the entity expects to incur to produce a product with its normal operating condition. It is usually compared with the actual cost incurred to calculate the variances and take corrective actions with those personnel involve.

Detailed explanation-3: -Standard costing is a system of accounting used to accumulate costs on products or services. They also compare unforeseen expenditures, cost variances, and waste deviations. Standard costs are predetermined by human factors such as labor, material, machinery, and other production elements.

Detailed explanation-4: -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-5: -What is Standard Costing? Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Subsequently, variances are recorded to show the difference between the expected and actual costs.