Merits of standard costing

Question

Write down the merits of standard costing?

Answer 1

-It offers a standard for evaluating the effectiveness or ineffectiveness in performance.

-It makes easy the essential management purpose of cost control.

-It sets a normal that wants superior attempt and motivation to work to accomplish the same.

-It can be employed as a basis for price filing the tenders, fixation and submission the quotation.

-It makes easy allocation of authority and fascination of responsibility for each and every department or individual.

-To take the counteractive evaluates, the management requires evaluating the discrepancy from the standard.

-It gives means to promote acts to diminish cost.