Standard costs are also known as predetermined costs in terms of money, quantity or time as the basis of standard costing. Standard costs are target costs, which should be attained and can be considered as a measuring rod or norms for performance evaluation.
Terminology
Terminology
There are various types of standards in use. Out of these, the suitable standards should be selected for effective cot control. The following are the main types of standards.
* Basic standards
* Ideas/expected standards
* Attainable standards
* Historical standards
* Basic standards
* Ideas/expected standards
* Attainable standards
* Historical standards