Standard costing, Cost Accounting

Assignment Help:

Standard Costing

A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of past costs as these may contain mistakes of past inefficiencies and may not incorporate changes in the business's operating environment like an example as, technological changes. Standard costs are developed from a scientific study of the different production cost elements included in producing a certain god or service. These are generally specified in a product's technical specifications.  To develop these costs, one needs to have a good idea or reliable calculation of the materials, labour and other cost levels that will apply throughout a specified period. Standard costs give a basis of cost control via variance analysis. This is one of the leases.  This is also the basis of budgeting. Standard costs are applied also in setting prices as well as valuing closing stocks and performance evaluation.


Related Discussions:- Standard costing

Calculate the gross profit margin, Assets                                  ...

Assets                                               2011                                                                        2010 Non Current Assets

Effective annual rate, The credit term from the supplier is 2/30, net 60. ...

The credit term from the supplier is 2/30, net 60. Requirements: Write the calculation Determine the effective annual rate if the firm does not take the discount.

Determine the total compensation cost, On January 1, 2013, VKI Corporation ...

On January 1, 2013, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the gr

Calculate cost or equivalent units, Calculate Cost or Equivalent Units ...

Calculate Cost or Equivalent Units The given work in progress account concerns to the blending department of a company, a soft-drinks company for the month of January in 1999

The cost per complete unit, In a given period production and cost data were...

In a given period production and cost data were as follows:     Total Costs   Materials   Rs. 5,115                      Labour          3,952                     Overheads

Evaluate the balance in the patent account, Banana Corporation had the foll...

Banana Corporation had the following transactions relating to a patent: January 1, 2010: Purchased patent for $2,000,000. The patent had fifteen years remainnig although Banan

Subsidiary ledgers and control accounts, Example B & B Mechanical Repai...

Example B & B Mechanical Repairs is a small, family owned partnership that specialises in the servicing and repair of motor vehicles. The business employs three qualified mecha

Calculate the payout ratio, The following information is available for Whit...

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

Applications of funds, Requirement for additional Funds A business would...

Requirement for additional Funds A business would require additional capital for two purposes: 1. Financing additional fixed assets, and

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd