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    Question

    What is the key objective of standard

    costing?
    A Tax planning Correct Answer Incorrect Answer
    B Budgeting Correct Answer Incorrect Answer
    C Performance evaluation through variance analysis Correct Answer Incorrect Answer
    D External reporting Correct Answer Incorrect Answer

    Solution

    It sets standard costs for operations, and actuals are compared to identify variances (favorable/unfavorable) to assess efficiency and control costs.

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