Advantages of Standard Costing.

Q69. What are the advantages of standard costing?
Ans. Advantages of standard costing are:

  1. Helps in fixation of prices and laying down production policies.
  2. It provide basis for measuring management’s efficiency.
  3. It help in the operation of system of management by exception with their variance analysis technique.
  4. It helps in elimination of avoidable wastage and losses.
  5. It enables the management to promote and reward the right person.
  6. It helps in delegation of authority.

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