The standard costing is a cost accounting method which is used by businesses for setting predetermined, estimated costs of direct materials, direct labor, and overhead. These pre-established costs, called standards, are derived from the data of the past, trends of the industry, and the expectations of management. Standard costing is a tool that helps to compare the actual costs and performance with the standard one, which in turn helps to the businesses to find out the variances and then the cost control will be improved.