Standard Costing is a cost accounting method that assigns a predetermined cost to products or services. This method helps businesses estimate expenses and set budgets by establishing expected costs for materials, labor, and overhead. By comparing actual costs to these standards, companies can identify variances and take corrective actions. This approach aids in performance evaluation and cost control, allowing management to make informed decisions. Standard Costing is commonly used in manufacturing and helps streamline operations by providing a clear framework for measuring efficiency and profitability.