Standard costing

Standard costing is costing system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for actual outputs produced and allocates overhead costs on the basis of the standard overhead-cost rates times the standard quantities of the allocation bases allowed for the actual outputs produced.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Standard costing. Costing system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for actual outputs produced and allocates overhead costs on the basis of the standard overhead-cost rates times the standard quantities of the allocation bases allowed for the actual outputs produced.

According to Managerial Accounting by Braun, Tietz (5th edition),

Standard costing. Also known as standard cost accounting. A method of accounting in which product costs are entered into the general ledger inventory accounts at standard cost rather than actual cost. The variances are captured in their own general ledger accounts and displayed on a standard costing income statement prior to being closed out at the end of the period.