A standard cost system is used to measure performance and value inventory. Variance reports are created using the standard cost system. Discuss why the details of material, labor and overhead are important factors used in this standard cost measurement process. This accounting process requires accuracy; discuss the impact to the company if the standard cost system does not generate accurate measurements. Provide examples to support your discussion.

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Answer Standard costing is a system of accounting that uses predetermined standard costs for direct material direct labor and factory overheads Standard costing is the second cost control technique th... View the full answer