Based on experience and research, standard costs are predetermined costs that include labor, material, factory overhead and machinery resources needed to produce a certain output can be predicted and standardized as norms in conducting costs analyses.

Question

Quizplus · Accepted Answer

Standard costs are predetermined estimates of the costs of manufacturing a product, including labor, materials, and overhead, used for budgeting and performance evaluation.

Based on Experience and Research, Standard Costs Are Predetermined Costs