Limitations of standard costing, Cost Accounting

LIMITATIONS OF STANDARD COSTING

1.     It may be very difficult to fix standards for all operations.

2.     Incorrect standards may result in wastage of money and time.

3.     Standards must be reviewed from time to time, if not reviewed, they lose relevancy.

4.      It pre assume determination of actual costs.

Posted Date: 10/15/2012 7:15:50 AM | Location : United States







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

Write discussion on Limitations of standard costing
Your posts are moderated
Related Questions
Conceptualizing Job Costing Start to develop an understanding of job costing by thinking about the simple illustration. Jack Castle owns an electrical constricting company, Cas

Advantages of Standard Costing 1. Management via Exception: the standard costing is an example for management via exception. By studying the variances, management's attentio

Winston Duff is planning to borrow $225,000 to purchase a new home. Mr. Duff is considering two fixed-rate financing alternatives offered by Horsepen Creek State Bank. The first

In this exercise you will familiarize yourself with index models, beta and CAPM estimation. Download the spreadsheet data_question3.xlsx from Sakai and use the data contained there

You are thinking of investing in one of two corporations, both in the same industry, the XYZ Corporation or the ABC Corporation. Selected data follows: Sales data for the year e

B REAK EVEN ANALYSIS Break even analysis is a broadly used technique to study cost-volume-profit relationship.  It can be explained as - 'a system for determination of that le

1) The Svelte Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life". The company sales budget estimates that

Labour Variances From our basic data, we can calculate the labour variances as given as: i. Labour Rate Variance = (AH x AR) - (AH  x SR)

QUESTION 1 Job costing Create a spreadsheet solution to the following problem. Follow the template provided. Play the Job cost podcasts and work through the example problem in tho

Financial Statement Issues that are Unique to Manufacturers Different from the retailers, manufacturers have three exclusive inventory category: 1) Raw Materials, 2)Work in