A standard cost is predetermined,that is,determined before actual costs of the current period have been computed.

Question

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A standard cost is an estimated or predetermined cost that is set before the actual costs of the current period have been computed. This allows businesses to plan and budget for costs in advance, based on expected levels of production or activity. Actual costs can then be compared to standard costs to identify any variances or inefficiencies in the production process.

A Standard Cost Is Predetermined,that Is,determined Before Actual Costs of the Current