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vampirchik [111]
2 years ago
15

The anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are:

Social Studies
2 answers:
Marta_Voda [28]2 years ago
8 0

Answer:

The correct answer is option c. "Standard costs".

Explanation:

Standard costs are defined as anticipated or expected costs incurred under normal conditions to produce a specific product or service. Usually, manufactures establish standard costs to their products according to their costs of material, labor and manufacturing processes. The term of standard costs is very important during cost accounting approaches in order to a company to perform in favorable conditions. The difference between the standard cost and the actual costs are known as variances.

9966 [12]2 years ago
4 0

<em>c. Standard costs </em>

Further explanation

Standard costs are planned costs for a product in the present or anticipated operating conditions. A standard cost has two components: a physical standard, which is a standard quantity of inputs per unit of output, and a standard price, which is a standard cost or standard rate per unit of input.

Standards almost resemble norms. What is considered normal can be generally accepted as a standard. In the industry, standards for making a table, assembling a microcomputer, processing crude oil, or producing cars are often based on quantitative and qualitative measurements and techniques. A standard should be considered a norm for production inputs, such as units of raw materials, labor hours, and the percentage of capacity used.

Usability of Standard Costs

Standard costs help plan operations and control. Standard costs provide insight into the possible effects of decisions on costs and profits. Standard fees are used for:

  1. Establish a budget
  2. Controlling costs by motivating employees and measuring operating efficiency.
  3. Simplify the cost calculation procedure and speed up the expense report.
  4. Charging costs for the supply of raw materials, work in process, and finished goods.
  5. Set contract bids and selling prices.

Learn  More

Standard costs : brainly.com/question/13032022

Details

Class: middle school

Subject: social studies

Keywords : Standard costs, product, operations and control

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