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Commerce · Q830

Costing

Graduate and Post Graduate · Commerce · question 830

Q830

Which of the following statements is true about estimated costs and standard costs?

A.
Standard costs are based on scientific analysis and engineering studies, while estimated costs are based on a historical basis
Answer
B.
Standard cost emphasis is on 'what cost will be', while estimated cost emphasis is on 'what cost should be'
C.
Standard costs are frequently revised compared to the estimated cost
D.
Estimated costs are stable than standard costs

Answer: Option A

Solution

Answer: Option A
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