Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Characteristics of standard costing
1) Flow of information: in a standard costing system cost information flows in a straight forward manner as material is requisitioned and wages as well as overheads incurred they are charged(debited) to the work in progress inventory at actual costs( except for material) and quantities. When the completion of goods taken place they are transferred to finished goods stock at standard cost. Therefore the work in process inventory at any point of time consists of the actual cost of the work being processed plus or minus the variance of actual from standard for the goods completed.
2) No actual costs: in a standard costing system, any actual product costs are generated. Actual total costs are collected based on the type of expense and debited to work in progress. The work in progress inventory is credited with the standard costs of the products produced. At no point dose the collection of actual material or labor for a specific product take place. Thus this implies that there is no need to fill in material requisition and time cards by products. All that is required is the number of products produced.
3) Appraisal of performance: a standard costing system collects analyses and reports performance by responsibility centers. It serves as a constant unit for measuring actual performance. In a historical cost incurred are compared with the actual costs in the preceding period. Unfortunately, it is a satisfactory criterion of performance measurement. This is because historical costs include a number of operational inefficiencies and also fails to show changes that have taken place in the intervening period relating to activity levels production methods market target trends etc.
4) Appropriate for repetitive activities: a standard costing system is appropriate where activities are repetitive in nature. Thus it is suitable for industries which produce identical goods in large quantities. In such industries activities are standardized and repetitive in nature, e.g., process industry.
Relevant costs and benefits for operating decisions: In operating decisions, concentration is on best use of existing capacity. Incremental analysis based on differential cost
A cash budget is one of the main important devices to plan and control cash payments and receipts. In preparation of a cash budget the subsequent points are considered. Cred
Q. Evaluate a proposed investment? BMP Consulting (BMPC) conducted an analysis of Delta Corp. and found that the firm consists of two different divisions: Pet Lovers, a pet sup
EOQ mathematical model As costs of ordering and holding stock are equal at the EOQ point, we can build a simple mathematical model to solve the problem, as follows: (Q/ 2) X
Review the roles of management accounting within a company. 1.What is the most important role of management accounting? 2.How is that different than financial accounting? 3.What is
Transfer pricing sometimes entails using different transfer pricing systems: one for tax purposes, and one for internal decision making, even though maintaining two systems can be
Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant by the year. These brackets are purchased from a supplier 100 miles
The management of Popular Stores Sdn. Bhd. are in the process of exploring the company’s investment opportunities.
identify and briefly describe four trends in macro market environment which influence on the selected industry?
opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd