Standards and budgets, Cost Accounting

Standards and Budgets

Budgets like you recall from the previous section, are simply plans for expected future performance expressed in quantified monetary terms. Therefore they are similar to standards for both cost levels and set performance for control reasons.  One would then conclude such standards and budgets are similar in principle though they differ in scope.  This variation is explained in the given two points as:

1. Standards are a unit concept that they apply to particular products, single operations or individual processes.

2. Budgets are concerned along with totals they lay the cost limits for functions and departments and for the firm as a complete.

What comes out clearly from the above is such standard cots are the "building blocks and cement" utilized to "build up" a structure referred to like a budget.  This is since a budget is the sum of the individual output units costs multiplied via the total output units desired like an example here

Budgeted Material Costs = (Standard Material Cost/Per Unit of Output) x (Number of output units/ desired)

Posted Date: 2/7/2013 5:28:23 AM | Location : United States







Related Discussions:- Standards and budgets, Assignment Help, Ask Question on Standards and budgets, Get Answer, Expert's Help, Standards and budgets Discussions

Write discussion on Standards and budgets
Your posts are moderated
Related Questions
tell me about debentures

DEFINITION OF BUDGET As per the Institute of Cost & Management (ICMA), London, a BUDGET is 'a quantitative statement and / or financial, prepared and approved prior to a defin


What conclusion can you draw when comparing the total landed or delivered cost to the original purchase cost? What does this suggest about the importance of supply chain managem

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the Pay Yourself First s

Determine whether process is under control: Hall's refrigeration and heating company is concerned about complaints from their customers about some of their technicia

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have


Idea behind Activity-Based Costing The most important ideas behind activity-based costing are as given as: Activities cause costs; activities involve ordering, ma

I need an example for Lilo,Fifo, and weighted average method for a year. Jan.begining inventory, purchases in Feb., April, July, October, and November. Can you help me with this?