As a device for measuring efficiency, standard cost systems enables management to determine the causes of differences between what a product should cost and how much it actually costs to produce.

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Standard cost systems provide a benchmark or standard for what a product should cost based on factors such as material costs, labor costs, and overhead costs. By comparing actual costs to these standards, management can identify areas where efficiency can be improved and take corrective action. Therefore, standard cost systems are an effective device for measuring efficiency.

As a Device for Measuring Efficiency, Standard Cost Systems Enables