Q69. What are the advantages of standard costing?
Ans. Advantages of standard costing are:
- Helps in fixation of prices and laying down production policies.
- It provide basis for measuring management’s efficiency.
- It help in the operation of system of management by exception with their variance analysis technique.
- It helps in elimination of avoidable wastage and losses.
- It enables the management to promote and reward the right person.
- It helps in delegation of authority.