Attainable standards and current standards, Cost Accounting

Assignment Help:

Attainable Standards and Current Standards

Although the standard must be set high sufficient that achievable and it has to be worked for. Attainable standards must provide a challenge to employees via giving them a tough however realistic target: hence it motivates management and employees to achieve high levels of output.

i. Attainable standards - these are utilized for product costing and pricing for stock valuation, for cost control and for budgeting and performance evaluation.

However to be meaningful, attainable standards require to be revised regularly so as to affect the conditions expected to prevail throughout the period whether the standards would be applied. Of all the standards attainable standards are probable to produce the highest level of motivation especially when the employees are adequately concerned in setting them.

ii. Current Standards - These are standards set for employ over a short period of time connected to current.

Because basic standards cannot be utilized for analyzing current efficiency levels, a current period's standard can be developed for the basic standards. The current period standard can then be utilized to analyze the current period performance. Current standards are useful particularly in inflationary situations where current standards could be set for a three month period or on a monthly basis to reflect the changes in prices.


Related Discussions:- Attainable standards and current standards

Monetary performance and the financial position, The question required cons...

The question required consideration of both the monetary performance and the financial position, from the perception of a potential lender. As with previous questions, candidates w

Compute the sales activity variance for each product, The next year's budge...

The next year's budget for Benny, Inc., is given below: Product 1-2 Sales $945,000-688500 Variable costs 459,900-297,000 Fixed costs 300,000-3

Numerical question, Beaver Company (a multi-product firm) produces 5,000 un...

Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is disconti

.., process costing new practices

process costing new practices

EXPECTED CASH COLLECTIONS.PRACTICE QUESTIONS, WORKED EXAMPLES OF EXPECTED C...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Prepare cost sheet, A job order cost sheet for Lowery Company is shown belo...

A job order cost sheet for Lowery Company is shown below Date Direct Materials Direct Labor Manufacturing overhead Beg Bal Jan 1 5,000 6,000 5,100 8 6,000 12 8,000 6,400 25 2,000 2

Determine opportunity costs, Determine Opportunity Costs A company has...

Determine Opportunity Costs A company has material B in stock that originally cost Shs. 5000 for the 1000 Kshs in stores. The material is missing over from an old purchase ord

Marginal costing.., importance of marginal costing &standing costing

importance of marginal costing &standing costing

Advantages of average costing method, Average costing method has the follow...

Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd