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Hunter Winkel
on Oct 23, 2024

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A standard cost is

A) the actual cost of a unit of production.
B) a budget for the production of one unit of a product or service.
C) useful in calculating equivalent units.
D) the average cost within the industry.

Standard Cost

The predetermined cost of manufacturing a single unit or a number of product units during a specific period, used for budgeting and performance evaluation.

Budget

A financial plan that estimates income and expenditure for a specific period of time.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units, facilitating cost calculation.

  • Acquire knowledge on the fundamentals of standard costing and its role in the decision-making process of management.
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Yanto SetiawanOct 30, 2024
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