What is an advantage of standard costing over normal costing and actual costing?
A) provides a greater capacity for control
B) provides limited availability of unit cost information
C) makes it necessary to compute a unit cost for each equivalent unit cost category
D) makes it easy to distinguish the FIFO and weighted average methods of accounting for beginning inventory costs

Question

Quizplus · Accepted Answer

Standard costing provides a greater capacity for control as it allows for setting standard costs for various activities and comparing them with actual costs, enabling management to identify areas where costs can be reduced or where there are inefficiencies. Normal costing and actual costing may not allow for such detailed analysis and control.

What Is an Advantage of Standard Costing Over Normal Costing