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What is Standard Cost?

Answer Posted / ravindra

standrd costis the cost which remains as standard cost
standard cost -actual cost = variance

1. actual quantity * actual rate -- 1

2. actual quntity * standard rate -- 2

3. standard quantity * standard rate -- 3

this is the formulaes for caluculating standard costing
like this we will keep some numeric values and see for eg
(4-1) the resulted figure is favourable or in favourable

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