Standard costing system, Cost Accounting

Standard costing System has the following main advantages or benefits:

1. The process in itself often discloses inefficiencies, because the setting of standards requires a thorough analysis of all cost functions.

2. The process of setting standards forces management to plan efficient and economical operations.

3. Standard costs establish clearly defined lines of cost responsibility and authority.

4. Standard costs are likely to be an important aid to management in obtaining acceptable job performance by providing a clear idea as to what constitutes acceptable performance.

5. Variances between actual performance and standard costs facilitate control through the application of the principle of exception.

6. Faster reporting of operating data is possible; the shortened time between action and the availability of control information helps management to prevent the development of unfavorable cost trends.

Posted Date: 2/28/2013 4:55:57 AM | Location : United States







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

Write discussion on Standard costing system
Your posts are moderated
Related Questions
The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

The activity driver for the shipping activity is the number of orders shipped. Product A uses 20 orders and Product B uses 60 orders. Calculate the consumption ratios for each prod

Absorption vs. Variable Costing Varilux manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further

Why is it important for financial statements and other external reports to be based on generally accepted accounting principles?


Constant Gross Margin Rate This method assumes that every product contributes an equal percentage of gross profit for every shilling of sales. It works back from gross margin

Product and period costs; CGM; CGS On August 1, 2013, Sietens Corporation had the following account balances: Raw Material Inventory (both direct and indirect) :- $ 72,000 WIP Inve

Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

G. Mills was appointed a local agent for the High Power Mobile Workshop Bolt (HPMW-B) on 1 April 2009. The HPMW-B is manufactured by Mobile Equipment Ltd (MEL). The company charges

Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p