Standard costs can be used by management to assess the reasonableness of actual costs incurred.

Name: Standard costs can be used by management to assess the reasonableness of actual costs incurred.
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Question

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Standard costs provide a benchmark for management to compare actual costs against. By comparing actual costs to standard costs, management can identify areas where actual costs are abnormally high or low and take corrective action as needed.

Standard Costs Can Be Used by Management to Assess the Reasonableness