Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Accounting and Auditing Cost and Management Accounting Standard costing
Which one of the following statements is true about estimated costs and standard costs ?
1
Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis.
2
Standard cost emphasis is on “what cost will be” while estimated cost emphasis is on “what cost should be”.
3
Standard costs are more frequently revised compared to estimated cost.
4
Estimated costs are more stable than standard costs.