Answer:
B. standard cost
Explanation:
A(n) standard cost is a carefully predetermined cost that is usually expressed on a per unit basis. This is mainly an estimated cost that takes into account all of the process, resources, and items that are being used during the manufacturing process. This cost is then compared to the actual cost in order to detect any errors in the accounting process.
Answer: B - standard cost
A standard cost is a carefully predetermined cost that is usually expressed on a per unit basis.
Explanation:
Standard cost is a goal cost, predetermined cost, an expected cost, future expected cost or a 'should be' cost. It is associated to variable costs and can be used by a firm's owner to calculate what the firm will incur in the future.
Standard cost is different from budget cost in the sense that standard cost is expressed on per unit basis while budget cost takes account of rota cost.
This formula below can be used to calculate a standard cost ;
Standard costs = direct labour × direct materials × manufacturing overhead
It takes control of the direct labour, direct materials and manufacturing overhead and then makes calculation of the total cost over the period of years given to calculate.
The stardard cost is a vital management tool for a manufacturer's present and future cost estimation.
