Standard costing would most often require which type of performance evaluation?
A) Flexible budgeting
B) Zero-based budgeting
C) Variable costing
D) Any of these choices

Question

Quizplus · Accepted Answer

Standard costing involves setting predetermined benchmarks for costs and comparing actual costs to these standards. One common method for evaluating performance using standard costing is through flexible budgeting, which adjusts the budget based on actual activity levels. This allows for a more accurate comparison of actual costs to budgeted costs, and highlights areas where performance is falling short or exceeding expectations. Zero-based budgeting and variable costing are not as closely related to standard costing as flexible budgeting.

Standard Costing Would Most Often Require Which Type of Performance