Definition of standard cost in English:

standard cost

noun

  • The estimated cost of a process, resource, or item used in a manufacturing enterprise, entered in an account and compared with the actual cost so that anomalies are readily detectable.

    • ‘Prior to Managerial Accounting, popular cost accounting textbooks were focused on the calculation of unit product costs in job order, process and standard cost systems.’
    • ‘He discussed why standard costs were needed to improve efficiency.’
    • ‘The only exception was in a few firms that had implemented standard cost systems to provide information for monitoring the efficiency of production separately from the general ledger.’
    • ‘Not many years ago the advocates of standard costs were like voices crying in the wilderness.’
    • ‘This budget employed a standard cost for each production step.’