The method not employed in the establishment of standard costs is:
A) analysis of historical performance data.
B) time and motion studies.
C) management judgement concerning future operating conditions.
D) discounted cash flow analysis.

Question

Quizplus · Accepted Answer

Discounted cash flow analysis is not a method typically used in the establishment of standard costs. Rather, standard costs are typically based on a combination of historical performance data, time and motion studies, and management judgement concerning future operating conditions.

The Method Not Employed in the Establishment of Standard Costs