INTERVIEW QUESTIONS COST ACCOUNTING COST SHEET DETAILS

Question: Define standard cost?

Answer: Standard cost has been described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or a "should be" cost. Standard costs are often a part of a manufacturer's annual profit plan and operating budgets. Standard costs will be established for the following year's direct materials, direct labor, and manufacturing overhead. If standard costs are used, there will be:
a) A standard cost for each unit of input (e.g., $30 per hour of direct labor)
b) A standard quantity of each input for each unit of output (e.g., 3 hours of labor for each product)
c) A standard cost for each unit of output (e.g., $30 X 3 hours = $90 of direct labor per product)

Standard cost has been described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or a "should be" cost. Standard costs are often a part of a manufacturer's annual profit plan and operating budgets. Standard costs will be established for the following year's direct materials, direct labor, and manufacturing overhead. If standard costs are used, there will be:
a) A standard cost for each unit of input (e.g., $30 per hour of direct labor)
b) A standard quantity of each input for each unit of output (e.g., 3 hours of labor for each product)
c) A standard cost for each unit of output (e.g., $30 X 3 hours = $90 of direct labor per product) Source: CoolInterview.com

If you have the better answer, then send it to us. We will display your answer after the approval.

Rules to Post Answers in CoolInterview.com:-

• There should not be any Spelling Mistakes.
• There should not be any Gramatical Errors.
• Answers must not contain any bad words.
• Answers should not be the repeat of same answer, already approved.
• Answer should be complete in itself.

Name :*
Email Id :*
Answer :*
Verification Code	Not readable? Load New Code
Enter the above shown code: *
	Inform me about updated answers to this question