Answer (A) is correct . A standard-cost system records the product at standard (predetermined) costs and compares expected with actual cost. This comparison allows deviations (variances) from expected results to be identified and investigated. A standard-cost system can be used in job-order, process-costing, and activity-based systems to isolate variances.
Answer (B) is incorrect because Standard costs may be used in any product costing system.
Answer (C) is incorrect because Standard costs may be used in any product costing system.
Answer (D) is incorrect because Standard costs may be used in any product costing system.
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