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Caoile, Yazmine Aliyah A.
on Nov 12, 2024

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Standard costs are divided into which of the following components?

A) variance standard and quantity standard
B) materials standard and labor standard
C) quality standard and quantity standard
D) price standard and quantity standard

Standard Costs

Standard costs are predetermined estimates of the cost to manufacture a single unit or a number of units of a product during a specific time period.

Variance Standard

A method used in budgeting and accounting to analyze the difference between planned financial outcomes and actual results.

Quantity Standard

A predetermined benchmark of the amount of input that should be used in the production of goods or services.

  • Understand the concept of standard costing and its components.
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Carien AndersonNov 16, 2024
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