Question

3.

(a)
(b)
(c)
What is Standard Cost?
Explain the two components of Standard Cost Variance.
State two advantages and two disadvantages of Standard Costing.

Answer 1

The Standard course duration is the normal duration of the course for a full-time student.

advantages =Standard Costing is used to minimize costs, improve quality, and increase efficiency. It also enables managers to compare actual results with expected results

disadvantage =Standard costs are usually associated with a manufacturing company's costs of direct material, direct labor, and manufacturing overhead. The disadvantages include that implementing a standard costing system can be time consuming, labor intensive, and expensive.