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Commerce Short Question | Gkseries

Q.

Which one of the following statements is true about estimated costs and standard costs ?

[A] Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis.
[B] Standard cost emphasis is on “what cost will be” while estimated cost emphasis is on “what cost should be”.
[C] Standard costs are more frequently revised compared to estimated cost.
[D] Estimated costs are more stable than standard costs
Answer & Explanation

Answer: Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis.

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