1.

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» B. Standard cost emphasis is on “what cost will be” while estimated cost emphasis is on “what cost should be”.


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