Asked Nov 3, 2019

Practice 2: 

a: Define standard costs.

b: under what conditions should previously established standard costs be revised?

c: explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.


Expert Answer

Step 1

a. Standard costs are the estimated costs of the items, processes, products which are used in the manufacturing processes in order to determine the variances by comparing them to the actual costs.

Step 2

b. Generally, standard costs are set every year based on the actual costs and expected movements in costs. However, if it is discovered that there have been an error in uploading the standard cost...

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