In a standard costing system, each item has a cost standard and a quantity standard.

Name: In a standard costing system, each item has a cost standard and a quantity standard.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a standard costing system, cost standards are set for each item produced and quantity standards are set for each input (such as labor, materials, and overhead) needed to produce the item. Together, these standards are used to calculate the expected cost of producing each item.

In a Standard Costing System, Each Item Has a Cost