In a standard costing system all inventories are recorded at
A) actual cost.
B) standard cost.
C) budgeted cost.
D) purchase cost.

Question

Quizplus · Accepted Answer

In a standard costing system, all inventories are recorded at the standard cost, which is a predetermined cost per unit of product that includes direct materials, direct labor, and manufacturing overhead costs. This helps to simplify accounting and budgeting processes and allows for easy analysis of variances between actual costs and expected costs. Actual costs may be used for specific purposes, such as job costing, but in general, standard costing provides a more accurate representation of inventory values.

In a Standard Costing System All Inventories Are Recorded at