[amp_mcq option1=”Standard costs are based on scientific analysis and engineering studies, while estimated costs are based on a historical basis” option2=”Standard cost emphasis is on ‘what cost will be’, while estimated cost emphasis is on ‘what cost should be'” option3=”Standard costs are frequently revised compared to the estimated cost” option4=”Estimated costs are stable than standard costs” correct=”option2″]<\/p>\n
The correct answer is: B. Standard cost emphasis is on ‘what cost will be’, while estimated cost emphasis is on ‘what cost should be’<\/strong><\/p>\n Standard costs are predetermined costs that are used to control costs and evaluate performance. They are based on a detailed analysis of the production process and the costs of materials, labor, and overhead. Standard costs are frequently revised to reflect changes in the production process, the cost of materials, or the cost of labor.<\/p>\n Estimated costs are the costs that are expected to be incurred for a particular project or activity. They are based on historical data and expert judgment. Estimated costs are not as accurate as standard costs, but they are often used when it is not possible to develop standard costs.<\/p>\n Here is a brief explanation of each option:<\/p>\n