●      Standard costing includes pre-determination of costs under specific working conditions.

●      In this process, the standard quantity of machine time, labor time, and material is calculated and the future market trend for price standards is analyzed.

●      Standard costing helps in variance analysis.

●      Along with fixation of sale price, it also provides valuation of stock and work in progress.

●      Material, labor, and overheads cost are ascertained.

●      Actual cost is measured.