Question

What is the purpose of using standard costs? I want answer in seven to eight sentences

Answer 1

standard costing is base on speculative values, It is used for identify the variances of revenues and costs so you can easy to control the variances , Standard is a predetermined measurable quantity set in defined conditions against which actual performance can be compared, usually for an element of work, operation or activity. Standard costs are developed for all inputs per unit of production, By using standard costing we get a good view and better undrstanding of the company.