Types of standard costs, Cost Accounting

Types of Standard Costs

The standard cost set could be ideal, basic, attainable or current.

i. Basic Standards: These are long term standards that would keep unchanged over the years. This sole needs to show trends over time for those items as material prices, labour rates, efficiency etc.  Therefore they cannot be used to highlight current inefficiency or efficiency; for this causes, basic standards do abnormally form part of the reporting system and will consequently be used as a background for statistical analysis over time.

ii. Ideal Standards: These are standards that can be achieved under the most favourable situations. They are therefore based on the best possible operating conditions. Therefore they do not make allowances for usual production problems as like material spoilage, idle time, stoppages, machine breakdowns, shrinkage. They can be revised periodically to reflect changes in the organizations operating situations. As an example: changes in technology. Though, the ideal standards assume perfect operating conditions, since they would be unattainable in real life that has normal operating problems. As like idle time and machine breakdown, idle time and employee slowdown because of fatigue.

Posted Date: 2/7/2013 5:20:18 AM | Location : United States







Related Discussions:- Types of standard costs, Assignment Help, Ask Question on Types of standard costs, Get Answer, Expert's Help, Types of standard costs Discussions

Write discussion on Types of standard costs
Your posts are moderated
Related Questions
what are the examples of factory overhead

1) Jodie received a $2000 college entrance scholarship. Nine month later Brian was awarded a $2100 academic proficiency scholarship for his outstanding grades in the first year of

What depreciation method does Amazon use for property and equipment? What is the range of useful lives for buildings and for fixtures and equipment? Do these useful lives make sens

British Columbia Lumber has a Raw Lumber Division and a Finished Lumber Division. The  variable costs are: 1.Raw Lumber Division: Rs. 100 per 100 board-feet of raw lumber 2.F

Classic Coolers manufactures portable coolers adorned with college logos. During the first quarter of the year, the company had the following costs: Direct materials used $55,500 D

Are public service corporations subject to uniform capitalization rules?


The following information is available for Whitlock Corporation in millions average common stockholders equity 2014-$2,532 2013-$2,591 dividends declared for common stockholders 20

Standard Costs Establish the Minimum Desirable Costs When actual costs incurred exceed or else are below the standard costs, we after that investigate the variances along with

This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and