Standard costs are used as target costs (or basis for comparison with the actual costs), and are developed from historical data analysis or from time and motion studies. They almost always vary from actual costs, because every situation has its share of unpredictable factors. Also called normal cost.
Use standard cost in a sentence
Before I went to that market and paid them my hard earned money, I wanted to know the standard cost of the item I wanted.
If you have an excess of your product you may want to offer it for cheaper than the standard cost to get rid of it.
Business usually provide their services to their customers using the business's past work history to provide the customer with a typical or standard cost for the service.