The process of determining the costs of the operations, processes, cost centres, and cost units within an organization.
A cost centre is an area of an organization for which costs are collected for the purposes of cost ascertainment, planning, decision-making, and control.
Standard costing is a cost accounting system that uses predetermined costs and income benchmarks for products and operations, comparing them with actual results to establish variances.
Standard production cost refers to the estimated costs of products and operations, calculated based on predetermined performance and cost levels, providing a benchmark against which actual production costs can be compared.
