This article focus to Define and Discuss on Standard Costs. When budgets are prepared, the costs are commonly computed at two quantities, in total dollars so an ongoing revenue statement can be well prepared, and cost per unit. The cost per unit is referred to as a standard cost. A standard cost may also be developed and used pertaining to pricing decisions and cost control even if a budget is certainly not prepared. A standard cost in a very manufacturing company such as Trucks Company consists of each unit costs for one on one materials, direct labor, along with overhead.