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Standard cost definitionQuestion What is the definition of standard cost?
Answer Standard cost is the estimated cost of material, labor, overheads and other costs for each unit of production or purchase in a given accounting period. It is used as the benchmark against which cost variances and financial performance are measured, the valuation for inventory and a basis for pricing.
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Related Categories: Accounting, Finance, Taxes, Cash Managment, Financial Planning, Inventory Management, Management, Selling
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