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Chapter 9: Standard Costing -Part 1
Standard costs are pre-determined cost. Standard costing is a control system for comparing the planned costs and revenues with actual results in order to report variances for the purpose of performance measurement and control.
By the end of this lesson, you should be able to:
- define standards cost;
- outline the purposes of standard costing; and
- describe types of standards costing: Ideal, attainable & current standard;