This is an advantage of standard costing. Standard costing prescribes expected performance and provides control. The standards establish what the costs should be, who should be responsible for them, and what actual costs are under control. This can assist in performance evaluation.
This is an advantage of standard costing. Standard costing prescribes expected performance and provides control. The standards establish what the costs should be, who should be responsible for them, and what actual costs are under control. This can allow employees to better understand what is expected of them.
This is an advantage of standard costing. Flexible budgeting and use of a standard costing system go together. One is not meaningful without the other.
Standard costing prescribes expected performance and provides control, which is quantitative, not qualitative.
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