Question

Standard costing is a technique which aims at

• A. Controlling and reducing costs
• B. Increasing costs
• C. Liberating costs
• D. None of the above

Answer 1

The correct option is A Controlling and reducing costs

Standard costing is one of the prominently used systems of cost control. It aims at establishing standards of performance and target costs which are to be achieved under a given set up working conditions. It is a pre-determined cost which determines what each product or service should cost under certain situation.