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Describe standard costs. Explain the benefits of using a standard cost system at a well-known company....

Describe standard costs. Explain the benefits of using a standard cost system at a well-known company. Do not post on a company that one of your classmates has already discussed.

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Standard cost is one of the important concept in cost accouting. It is the estimated cost of a product and serves to compare between the actual cost. It is the cost which would get incurred at the given condition. It is predetermined in natue and acts as a control costs by comparing with the actual one. The benefits of using it can be several. For example, ABC Ltd's standard cost helps in determining the budget. It helps in planning and forecasting the amount needed in to manufacture a product. It acts as a control tool as it can be compared with actual cost. It heps in motivating the employees and performance can measured on the basis of this cost.

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