Reference no: EM132982958

Problem 1: Which of the following best defines standard costing?

a. It is the same as actual costing but done in real time.

b. It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used.

c. It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced.

d. It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.