Which of the following statements is correct?
A) Standard costs are the costs necessary to produce an average or standard product.
B) Standard costs can serve as benchmarks against which budgeted performance is measured.
C) The limitation of actual costs is that they represent what happened not necessarily what should have happened.
D) Standard costs can only be used for analytical purposes and can never be incorporated into the formal accounting system.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) Standard costs are the costs necessary to produce an average or standard product.
B) Standard costs can serve as benchmarks against which budgeted performance is measured.
C) The limitation of actual costs is that they represent what happened not necessarily what should have happened.
D) Standard costs can only be used for analytical purposes and can never be incorporated into the formal accounting system.

Which of the Following Statements Is Correct