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Standard costing technique Question 3 options: Attempts to capture the economic profit generated by a company by subtracting a charge for capital from net operating
Standard costing technique
Question options:
Attempts to capture the economic profit generated by a company by subtracting a charge for capital from net operating profit, EVA NOPAT Capital employed times Cost of Capital
Actual costs are compared to standard costs to determine whether variances exist. Variances are investigated to determine causes.
Assigns the direct and indirect costs to work activities and then reassigns those costs to products, services, channels, or supply chains that consume a firm's resources.
Currently very limited largely between immediate supplier and customer with information shared limited to the costs pertaining to a joint project.
All of the above are correct about Standard costing technique
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