Standard Cost Concept

Standard Cost designates a pre determined cost that represents the ideal value or costs reference point for a company. The standard costs are who form a base of funding systems highly used in industrial companies. At the beginning of each exercise companies establish their standard values for the several types of costs being them raw material costs, employees’ costs, manufacturing general costs, etc., forming these, the reference for the establishment of goals.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.