A standard costing system
A) is not typically used by management for cost planning and cost control purposes.
B) is a system in which all costs affecting the three inventory accounts and the Cost of Goods Sold account are stated in terms of actual costs incurred.
C) depends on actual costs rather than planned costs.
D) is employed with an existing job order costing or process costing system and is not a full cost accounting system in itself.

Question

Quizplus · Accepted Answer

A standard costing system is not a full cost accounting system in itself and is typically used in conjunction with an existing job order costing or process costing system. The system involves setting predetermined costs or standards for materials, labor, and overhead, and then comparing actual costs to those standards for variance analysis and cost control purposes.

A Standard Costing System