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Classification and computation of variances
The computation and analysis of variances is the main aim of standard costing. The variance is the difference among the standard performance and the actual performance. Where variances recorded are unfavorable the concerned departmental head is help responsible. For it and he is asked to take corrective action into the matter. For adverse material price variance the purchase manager is sounded; and same for material usage variance the production manager is asked for a control over the similar.
Explain standard costing according to backer and Jacobsen According to backer and Jacobsen, standard cost is the amount the firm to measure the variation from standard costs th
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