Estimated costs & standard costs - Comparison
Q. Which of the following statements are true about Estimated Costs and Standard Costs?- Published on 08 Sep 15a. Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical
b. Standard cost emphasis is on ‘what cost will be’ while estimated costs emphasis is on ‘What cost should be’
c. Standard costs are more frequently revised compared to estimated costs
d. Estimated costs are more stable than standard costs
ANSWER: Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical
