Costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as

A. constant costing

B. standard costing

C. unit costing

D. batch costing

Answer: Option B

Solution(By Examveda Team)

Costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as standard costing. Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Subsequently, variances are recorded to show the difference between the expected and actual costs.