top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration

Facebook Login
Site Registration

What is standard cost?

+1 vote
What is standard cost?
posted Jun 21, 2017 by Divya Shree

Share this question
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

0 votes

Standard cost has been described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or a “should be” cost. Standard costs are often a part of a manufacturer’s annual profit plan and operating budgets. Standard costs will be established for the following year’s direct materials, direct labor, and manufacturing overhead. If standard costs are used, there will be:
► A standard cost for each unit of input (e.g., $30 per hour of direct labor)
► A standard quantity of each input for each unit of output (e.g., 3 hours of labor for each product)
► A standard cost for each unit of output (e.g., $30 X 3 hours = $90 of direct labor per product)

answer Jun 22, 2017 by Naveen Kumar
Contact Us
+91 9880187415
#280, 3rd floor, 5th Main
6th Sector, HSR Layout
Karnataka INDIA.