I need a substantive comment on this post:

Standard costs are a predetermined cost or an estimate of future costs. When figuring out standard costs you look at the average direct material, direct labor and manufacturing overhead that it takes to make one product. Once you add all of these together you can set your target margin that you want to make per item and that your customer base will be willing to pay and come up with your retail price. With doing costs x3 or x4 you leave room for not only profit but to be able to run sales for your customers without being out of pocket money. The benefits of a company like bath and body works using standard cost is they know how much it will take to make one candle, hand soap and body lotion so they can price according. By keeping Their prices similar the customer know what to expect to spend on each item no matter the scent when going in the store. Buy them knowing their standard costs they are able to price to where all of the sales that they run for their buy 2 get two on body wash and hand soap are still being covered. Also they are able to run their famous candle day sale on their large candles every year and still keep their business running despite the large mark down.