can you summarize Simplicity: Standard costing is a simple and straightforward method to understand and implement. It uses estimated costs for materials, labor, and overhead to calculate the expected cost of production. This simplicity makes it easier for managers to understand and use in decision-making. Cost Control: Standard costing allows businesses to compare the estimated costs of production with the actual costs. This comparison helps in identifying variances, which can be analyzed to control and reduce costs in the future. Budgeting: Standard costing aids in budget preparation. Since it uses estimated costs, it provides a basis for forecasting future costs and revenues, which is crucial in budgeting. Example: Let's say a furniture manufacturing company uses standard costing. They estimate that the cost to produce one table includes $50 for materials, $30 for labor, and $20 for overhead, totaling $100. At the end of the production period, they find that the actual cost was $110 per table. The variance of $10 per table can be analyzed to find out if the materials cost more than expected, if labor was inefficient, or if overhead costs were higher. This analysis can help the company control its costs better in the future