Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 7 - Flexible Budgets, Direct-Cost Variances, and Management Control - Assignment Material - Questions - Page 274: 7-7

Answer

Standard costs serve four main purposes: 1) Evaluating performance by comparing actual costs to predetermined standards 2) Controlling costs by setting expected cost levels 3) Guiding pricing decisions by providing cost benchmarks 4) Valuing inventory consistently for financial reporting.

Work Step by Step

Standard costs serve four main purposes: 1) Evaluating performance by comparing actual costs to predetermined standards 2) Controlling costs by setting expected cost levels 3) Guiding pricing decisions by providing cost benchmarks 4) Valuing inventory consistently for financial reporting.
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