GENERAL KNOWLEDGE

Detailed explanation-1: -Improved cost control. More useful information for managerial planning and decision making. More reasonable and easier inventory measurements. Cost savings in record-keeping.

Detailed explanation-2: -A Standard Cost system can be valuable for top management in planning and decision-making. More reasonable and easier inventory measurements A Standard Cost system provides easier inventory valuation than an actual cost system. Under an actual cost system, unit costs for batches of identical products may differ widely.

Detailed explanation-3: -Standard costing is a management strategy that assists management in cost planning and control by setting and adhering to preset norms of material, labour, and overhead prices. It is used to compare real costs to standard expenses in order to assess, monitor, and analyze performance.

Detailed explanation-4: -Answer and Explanation: Standard costs are estimation of cost of production of one unit of product. It helps in controlling the actual cost of production and achieving efficiency by the organization. It however is nowhere related to setting of sales price.

Detailed explanation-5: -It provides a basis for comparing actual costs to standard costs. It helps identify variances that management needs to address to improve the production processes. It can help motivate employees to meet or even exceed goals. It can help companies set better production targets.