Reasons for using standard costing include:
A) Comparing projected costs against actual costs
B) Planning and budgeting purposes
C) Setting prices in advance
D) Identifying specific areas for process improvement
E) All of the above

Question

Quizplus · Accepted Answer

Standard costing is used for a variety of reasons, including comparing projected costs against actual costs to identify variances, planning and budgeting, setting prices in advance based on standard costs, and identifying specific areas where process improvements can be made. All of the options provided (A, B, C, D) are valid reasons for using standard costing, making E (All of the above) the correct answer.

Reasons for Using Standard Costing Include