Question

a) Standard costing aids management in planning and control
b) Standard costing does not help the manager in decision making
Of these.

• A. (a) is true, but (b) is false
• B. (a) is false, but (b) is true
• C. Both (a) and (b) are true
• D. Both (a) and (b) are false

Answer 1

The correct option is A (a) is true, but (b) is false

A standard costing system involves estimating the required costs of a production process.

When you compare the actual costs to the standard costs and examine the variances between them, it allows managers to look for ways to improve cost control, cost management, and operational efficiency.

Hence resulting in decision making also.