Standards in standard costing, Cost Accounting

Standards in Standard Costing

1) The type of standard utilized basic, attainable, ideal, current directly affects the level of the variances that can arise, and the meaning that can be attached to the variances. As an example: negative or unfavourable variance will be taken more seriously whether it is registered utilizing a current and attainable standard than when it is registered utilizing basic or ideal standards.

2) Standards for the similar cost can vary from organization to organization depending on the level of efficiency desired via the management. Hence standards are extremely subjective. What is a matter also of management opinion?

3) The accuracy of the standards set depends on the accuracy of the forecasting prices, activity level, and wage and so on of the tam setting those standards. If the team is excellent in forecasting skills after that the standards set are probable to be error free and vice versa.

Posted Date: 2/7/2013 5:26:13 AM | Location : United States







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

Write discussion on Standards in standard costing
Your posts are moderated
Related Questions
The value of un-sold stock. The stock is valued at cost or market price either is lower. Usually, the closing stock is not specified in the trial balance but is specified in adjust

Schedule of Work in Process The given schedule presents the calculations which pertain to work in the process. Pay attention to the details, noting that (1) direct materials

Example of Job Order Costing The given transactions were made by a company in the month of December. Direct Materials a) 8,000/- was bought on credit, out of these

The data set for the assignment is about breast cancer.  Some of these data have been changed for the purposes of this assignment so the results from the analysis of this file may

advantages and disadvantages of just in time

Calculate the rate of learning at which the initial production phase profit target would be achieved, assuming no other cost savings can be made.   Assuming no other cost savi

What are the missing amounts for the below amortization table, given the following information? -  A firm borrows $100,000 from a bank. -  The terms of the loan require the f

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor


The profit volume ratio of xltd. is 50% and the margin of safety is 40%.you are required to calculate the net profit if sales volume is rs.100,000?