In a standard costing system, standard costs eventually flow into the
A) Cost of Goods Sold account.
B) Standard Cost account.
C) Selling and Administrative Expenses account.
D) Sales account.

Question

Quizplus · Accepted Answer

Standard costs are used to estimate the cost of producing goods or services, and once actual production occurs, the actual costs are compared to the standard costs. The difference between actual costs and standard costs is recorded in the Cost of Goods Sold account, which is why standard costs eventually flow into this account.

In a Standard Costing System, Standard Costs Eventually Flow into the