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
What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what ty

Budgetary Planning and Control Budgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in the defined duration.  Th


Contract Costing Terminology Principles of profit income recognition in contracts The Notional Profit This is a component of two items as: a) Profit taken   = Noti

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

Example of ABC System Assume an example, such the cost pool for the ordering activity totaled of Ksh.100, 000 and such there were 10,000 orders the cost driver. Therefore all


1.What is a Statement of Cash Flows? How does it differ from an Income Statement? 2.What unique information does the Statement of Cash Flows deliver to investors? Why do they care?

A retail dealer in garments is currently selling 24000 shirts annually. He supplies the following details for the year ended 31st December,2007. Rs Selling Price per shirt

Standard Cost Card It is a card record of the Standard or expected costs in producing a specified output.  This gives the physical quantities of inputs and also their monetary