Which of the Following Best Defines Standard Costing

question 32

Multiple Choice

Which of the following best defines standard costing?

• A) It is the same as actual costing but done in real time.
• B) It is a system that traces direct cost to output by multiplying actual process or rates by actual quantities of inputs + allocates overhead by on the basis of actual quantities of the allocation base used.
• C) It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced.
• D) It is a system that allocates overhead costs on the basis of standard overhead cost rates times the actual quantities of the allocation based used.

---

Definitions:

Insurance Benefit

A payment or service provided by an insurance company to the policyholder or a designated recipient under the terms of an insurance policy.

Lump Payment

Lump Payment is a single payment made at a particular time, in contrast to multiple payments made over time.

Compounded Monthly

Monthly calculation of interest that factors in the original principal and also the accumulated interest from the past periods.

Month-End Payments

Regular payments made at the end of each month, often related to financial transactions such as loan repayments or rent.