Definition of standard cost in English:
The estimated cost of a process, resource, or item used in a manufacturing enterprise, entered in an account and compared with the actual cost so that anomalies are readily detectable.
- This budget employed a standard cost for each production step.
- Prior to Managerial Accounting, popular cost accounting textbooks were focused on the calculation of unit product costs in job order, process and standard cost systems.
- Not many years ago the advocates of standard costs were like voices crying in the wilderness.
standard costing noun
- Example sentences
- In Spain standard costing was used for decision making as early as the 17th century.
- In actuality, norm-based accounting was first employed in the early 1900s when standard costing and other scientific management principles became socially acceptable.
- In the context of the development of scientific management, it is, of course, standard costing which is seen as being the key accounting change.
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.
Most popular in the US
Most popular in the UK
Most popular in Australia
Most popular in India
Most popular in Pakistan