Asked by
Insha Malik
on Nov 17, 2024
Verified
Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.
Standard Costs
Predetermined or estimated costs of manufacturing, used for budgeting and assessing performance.
Management Tool
A management tool encompasses various strategies, techniques, or software used by managers to improve decision-making, efficiency, and effectiveness within an organization.
Ledger
A group of accounts for a business.
- Familiarize yourself with the concept of standard costs and how they contribute to budget formulations and variance analyses.
Verified Answer
TO
Learning Objectives
- Familiarize yourself with the concept of standard costs and how they contribute to budget formulations and variance analyses.