Standard quantities and costs are simply a way of quantifying a budgeted quantity or cost per unit of product. For example, if use a given material to make a product, how much material do we expect to use for each unit of product? What will be the material cost per unit? We can do these same determinations for other product costs. Using standard quantities and costs will be important when we begin to calculate material, labor, and overhead variance ?

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Standard quantities and costs refer to the expected or budgeted quantity or cost per unit of product ... View the full answer