Standard costing, Cost Accounting

Standard Costing

A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of past costs as these may contain mistakes of past inefficiencies and may not incorporate changes in the business's operating environment like an example as, technological changes. Standard costs are developed from a scientific study of the different production cost elements included in producing a certain god or service. These are generally specified in a product's technical specifications.  To develop these costs, one needs to have a good idea or reliable calculation of the materials, labour and other cost levels that will apply throughout a specified period. Standard costs give a basis of cost control via variance analysis. This is one of the leases.  This is also the basis of budgeting. Standard costs are applied also in setting prices as well as valuing closing stocks and performance evaluation.

Posted Date: 2/7/2013 5:16:13 AM | Location : United States







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

Write discussion on Standard costing
Your posts are moderated
Related Questions
You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on ass

The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based

Phelps Glass Inc. has reported the following financial data: net revenues of $10 million, variable costs of $5 million, controllable, fixed costs of $2 million, non-controllable fi

A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d

Calculate the today's cash value of a car that can be leased with $5000 down, bi-weekly payments of $199 over 4 years and a buy-back value of $15,000 at the end of the lease if the

Cost Volume Profit Analysis 1. Post Publishers has collected the following data for recent months: Month                 Issues published              Total cost May

Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St

A. Bolero Industries Ltd. has been approached by a customer who would like a special job to be done for her, and is willing to pay $60,000 for it. The job would require the followi

For your assignment, discuss when the government and nonprofit organizations would use each of the following funds: Capital projects fund Debt service fund Special r