Cost systems using detailed estimates of each element of manufacturing cost entering into the finished product are called standard cost systems.

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Standard cost systems involve detailed estimates of each element of manufacturing cost that goes into the finished product. These estimates are based on budgeted or predetermined costs for direct materials, direct labor, and factory overhead. By comparing actual costs to standard costs, businesses can identify inefficiencies and take action to improve their operations.

Cost Systems Using Detailed Estimates of Each Element of Manufacturing