Standard costing is a process that enables businesses to set cost standards for products and services and thereby, helps to budget, price, and evaluate the performance of the business. Through the comparison of standard costs with actual costs, businesses are able to spot the deviations and hence, take the right measures to control them and hence, optimize the efficiency and profitability. Standard costing is also a way to support better decision-making by giving managers a better understanding of the cost behavior and performance metrics. Thus this is answer of what is standard costing.
