A standard cost is the per-unit cost incurred under:
A)Ideal operating conditions.
B)Perfect operating conditions.
C)Normal,but efficient operating conditions.
D)Minimally acceptable operating conditions.

Question

Quizplus · Accepted Answer

A standard cost is the per-unit cost incurred under normal, but efficient operating conditions. It is meant to be a benchmark against which actual costs can be compared for performance evaluation and decision-making purposes. Ideal or perfect operating conditions are not realistic, and minimally acceptable operating conditions do not reflect efficient operations.

A Standard Cost Is the Per-Unit Cost Incurred Under