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Standard cost per output unit for each variable direct cost input is calculated by multiplying developed for a period for a planned output. An estimated expense that typically happens throughout the creation of a good or provision of a service is called a standard cost.
In other words, standard cost is the estimated sum of money a business will need to spend in order to create a something or provide a service under typical circumstances. Examples include payments due for rent, utilities, insurance, office staff salary, and supplies, among others. the normal fixed cost is $100,000, and the hourly rate is $15.
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