Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive, measurable output.

Question

Quizplus · Accepted Answer

Standard costing systems are commonly used in manufacturing to estimate costs and track variances. Nonmanufacturing expenses, such as salaries and rent, are generally not as easily measurable or predictable as manufacturing costs and therefore may not be well-suited for a standard costing system.

Using a Standard Costing System for Nonmanufacturing Expenses Is Easily