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      Question

      ……………… cost is a criterion cost which may be

      used as a yardstick to measure the efficiency with which actual cost has been incurred.
      A Marginal Cost Correct Answer Incorrect Answer
      B Standard Cost Correct Answer Incorrect Answer
      C Absorption Cost Correct Answer Incorrect Answer
      D Product Cost Correct Answer Incorrect Answer

      Solution

      Standard cost is a criterion cost which may be used as a yardstick to measure the efficiency with which actual cost has been incurred. Standard Costs are the predetermined costs or the target costs that should be incurred under efficient operating conditions.

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