Standard costs are useful for all but which of the following?
A) Determining actual costs
B) Preparing budgets and forecasts
C) Evaluating the performance of workers and management
D) Helping to develop appropriate selling prices

Question

Quizplus · Accepted Answer

Standard costs are not useful for determining actual costs, as they are predetermined estimates of what costs should be. Actual costs may deviate from standard costs due to various factors such as material price fluctuation or production inefficiencies. However, standard costs are useful for preparing budgets and forecasts, evaluating the performance of workers and management, and helping to develop appropriate selling prices.

Standard Costs Are Useful for All but Which of the Following