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
What is the major value of the weighted cost of capital calculation for the firm?

KIW Ltd currently orders Material B in batches of 2,500 kgs. Material B is consumed at a steady, known rate over the company's planning horizon of one year. The current usage is 40

Atkinson's Reliable Tools makes two products that use similar raw materials: #587Q and #253X. Estimated production needs for a unit of each product follows. #587Q #253X Steel (in p

Required Ledgers in Financial System In the financial Systems the Required ledgers are as: The General Ledger Debtors Ledger Creditors Ledger

HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT IN ACCOUNTING

Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

Assumptions of CVP This chapter has given information on how to apply CVP for the business analysis. Most of this analysis is keyed to the model of how profitability is impacte

QUESTION 1: PART A Swatathon Inc. has two production departments (A and B) and two service departments (maintenance and stores). Details of next year's budgeted overheads

Samuel Construction Company engaged in a contract to construct a building on 1 July 2011 with completion of the contract by the 30 June 2014.  The contract price amounted to a tota

What are the five accounts used in adjusting entry for periodic inventory at the end of the year?