Standard costing

standard costing is a costing method that traces direct cost to a cost object by multiplying the standard prices or rates times the standard input load for actual outputs achieved and allocate indirect costs on the basis of the standard indirect rates times the standard inputs allowed for the actual outputs achieved.

Standard out cost system is a cost system that records manufacturing costs at standard rather than actual amounts.

In the “extended normal costing”, the direct labor costs are also assigned based on a predetermined rate.