A standard cost isA) a cost which is paid for a group of similar products.B) the average cost in an industry.C) a predetermined cost.D) the historical cost of producing a product last year.

Question

A standard cost isA)  a cost which is paid for a group of similar products.B)  the average cost in an industry.C)  a predetermined cost.D)  the historical cost of producing a product last year.

Ebony Hollingsworth · Accepted Answer

Final Answer : C, Explanation :  A standard cost is a predetermined cost that is established before the actual production or operation process takes place. This cost includes both direct and indirect costs and can be used as a basis for comparison with actual costs to evaluate performance and identify areas for improvement. Therefore, option C is the correct answer. A is incorrect as a standard cost is not necessarily paid for a group of similar products. B is incorrect as it refers to average cost, not standard cost. D is incorrect as standard cost is not based on historical cost but is instead predetermined.

A standard cost is

A) a cost which is paid for a group of similar products.
B) the average cost in an industry.
C) a predetermined cost.
D) the historical cost of producing a product last year.

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