Which of these is a key purpose of standard costing?
A) Determining break-even production level
B) Allocating costs more accurately
C) Controlling costs
D) Profit determination

Question

Quizplus · Accepted Answer

The key purpose of standard costing is to help control costs by setting predetermined standards for both costs and production levels, which can be used for comparison and analysis against actual performance. While it may indirectly assist with determining break-even production level or allocating costs more accurately, the primary focus is on cost control. Profit determination is not a key purpose of standard costing, as it is primarily concerned with costs rather than revenue.

Which of These Is a Key Purpose of Standard Costing