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N. K. Gupta posted an Question
September 17, 2021 • 11:01 am 30 points
  • UGC NET
  • Commerce

Diffrence between standerd coat and estimated cost in simple difination

diffrence between standerd coat and estimated cost in simple difination

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  • Rucha rajesh shingvekar Best Answer

    A standard cost is an estimated expense that normally occurs during the production of a product or performance of a service. In other words, this is theoretically the amount of money a company will have to spend to produce a product or perform a service under normal conditions. Standard costing is the practice of estimating the expense of a production process. For example, to plan their costs for the coming year on various expenses such as direct material, direct labor or overhead. Estimated cost is the projection of the amount of costs that will be incurred to build a product or construct something. This amount is derived as part of the capital budgeting process for an internal project, or as part of a sales bid when attempting to sell to a customer.

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