Advantages of standard costing, Cost Accounting

ADVANTAGES OF STANDARD COSTING

1.     It offers a yardstick for measurement of performance.

2.     It helps 'Management by Exception'.

3.     It allows the management to focus more on those activities and expenses, which indicate high favorable or adverse variances, that saving lot of time and expense.

4.     It offers motivation for achieving high performance.

5.     It offers an opportunity for continuous re-appraisal of the methods of production, use of material, production design, etc, leading to cost reduction and establishing new standards.

6.     It is economical and easier to operate.

7.     It can be used as an aid to budgeting.

8.     It removes wastages by detecting variances and suggesting corrective measures for them.

Posted Date: 10/15/2012 7:15:11 AM | Location : United States







Related Discussions:- Advantages of standard costing, Assignment Help, Ask Question on Advantages of standard costing, Get Answer, Expert's Help, Advantages of standard costing Discussions

Write discussion on Advantages of standard costing
Your posts are moderated
Related Questions
Where the liabilities are identified but the amounts cannot be precisely found, we estimate the liability and give for it as a liability. A common illustration is income tax payabl

what are the legal distinctions between a business combination, a merger, and a consolidation.

Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair parts 16,000

what is Taylor''s differential piece rate plan

You have been asked by Mogul-Basher (MB) Ltd., a manufacturer of snowboards, to evaluate its capital structure. As a first step, you need to estimate MB's current weighted average

explain the different methods of costing

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire


Advantages and Disadvantages of Group Bonus Plan Benefits associated along with group bonus schemes involve i. It encourages teamwork and cooperation among workers ii.

Classification of Labour Costs This can be classified into like: a) Indirect or Direct cost b) Variable or Fixed cost c) Non controllable and controllable cost a)