A standard cost system is one:
A)that provides a separate record of cost for each special-order product.
B)that uses predetermined costs to furnish a measurement that helps management make decisions regarding the efficiency of operations.
C)that accumulates costs for each department or process in the factory.
D)where costs are accumulated on a job cost sheet.

Question

Quizplus · Accepted Answer

A standard cost system uses predetermined costs to provide a measurement of efficiency in operations. This helps management make informed decisions about the cost effectiveness of operations. Options A, C, and D refer to different methods of accumulating costs but do not describe a standard cost system.

A Standard Cost System Is One