In a standard cost system, costs are assigned to fixed overheads, direct materials, direct labor, and variable overhead.
Standard costing refers to the practice of creating the estimates or standard costs for all the activities of a company.
The main reason for using standard costs is that there are many applications where it is considered very time-consuming to collect the actual costs so standard costs can be used as a close approximation to actual costs.
Therefore, E is the correct option.
Learn more about Standard costing here:
https://brainly.com/question/23678367
#SPJ1
