Asked by Christopher Vartanian on May 18, 2024
Verified
Standard costs serve as a device for measuring efficiency.
Standard Costs
Predetermined costs serving as a benchmark for evaluating the actual cost performance of operations.
Measuring Efficiency
The process of evaluating the performance of a system, organization, or component by comparing its output with its input.
- Outline the concept of variance and identify its significance in the control of expenditure and the assessment of performance outcomes.
Verified Answer
PS
Pravin SangaralingamMay 19, 2024
Final Answer :
True
Explanation :
Standard costs provide a benchmark or target for measuring actual costs incurred. By comparing actual costs to the standard costs, management can evaluate the efficiency of operations and identify areas where improvements can be made.
Learning Objectives
- Outline the concept of variance and identify its significance in the control of expenditure and the assessment of performance outcomes.
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