Standard costs are developed using:
A) This period's costs
B) Last period's costs
C) Costs that have been updated for future expectations
D) Information obtained from tax authorities

Question

Quizplus · Accepted Answer

Standard costs are developed using costs that have been updated for future expectations. This means that the costs used as a basis for developing standard costs are not necessarily based on the current or last period's costs, but rather on an estimation of what costs are expected to be in the future. This allows organizations to plan and budget based on expected costs rather than historical costs. Information obtained from tax authorities or this period's costs may not accurately reflect future costs, which is the purpose of developing standard costs.

Standard Costs Are Developed Using