Standard costs are not used for
A)determining actual costs.
B)preparing budgets and forecasts.
C)evaluating the performance of workers and management.
D)developing appropriate selling prices.

Question

Quizplus · Accepted Answer

Standard costs are predetermined costs and are not based on actual costs. Therefore, they cannot be used for determining actual costs. However, they can be used for the other three purposes listed, such as preparing budgets and forecasts, evaluating performance, and developing selling prices.

Standard Costs Are Not Used for