Standards in standard costing, Cost Accounting

Assignment Help:

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.


Related Discussions:- Standards in standard costing

Integrated ledger system, Integrated Ledger System An integrated accou...

Integrated Ledger System An integrated account ledger system, which has a number of features that may be viewed as preferable to the interlocking ledger system. In present dec

Prepare the journal entries to record non-monetary exchange, Moore Corporat...

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

Calculate the gross profit percentage, At the end of Ehlinger Department St...

At the end of Ehlinger Department Store's fiscal year on December 31, 2012, these accounts appeared in its adjusted trial balance: Freight-In $ 7,200

Process costing, how to prepare separate accounts for each process given ha...

how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process

Determine the expost returns, Calculate the skewness and kurtosis statistic...

Calculate the skewness and kurtosis statistics for your assignment portfolio. How do these reconcile with the assumptions behind Modern Portfolio Theory? Demonstrate analyticall

What is cmmi, Capability Maturity Model Integration (CMMI) is a process dev...

Capability Maturity Model Integration (CMMI) is a process development approach that gives organizations with the essential elements of effective processes. It can be used to gui

Algebra in cost accounting, I''m about to take my first cost accounting cl...

I''m about to take my first cost accounting class in college, Do i need algebra skills to do well on this class

.inventory, what are thereasons for holding inventories

what are thereasons for holding inventories

Purpose of cost accounting, what is the purpose of cost accounting and its ...

what is the purpose of cost accounting and its nat ure?

Cost accounting, some clarificationon how to compute closing stock and open...

some clarificationon how to compute closing stock and openning stock using marginal costing technique and absorption.

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