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!
STANDARD COSTING AND BUDGETARY CONTROL
In practice, the terms standard cost and budgeted cost might be used interchangeably. Whereas it is possible to have budgeting without standard costs, it is not possible to have standard cost system without total cost budgeting system.
Standard costing and budgetary control are interlinked items. Once standard cost has been determined and is relatively easy to compute budgets for production costs and sales and, when actual figures differ from expected standards, to calculate variances, to provide a basis for control reporting.
A standard cost is an average predictable unit cost. It is set using the best available estimates and cannot be expected in practice that actual results will conform to standard. Variances must therefore be expected to fluctuate randomly within normal limits. Such random fluctuations need no investigation and tolerance limits are set (investigate only those variances which exceeds Sh.x or y% of the standard cost).
Standard costing is appropriate in any situation where the same resources are used over and over again in the same way. It is therefore particularly appropriate for manufacturing businesses producing large numbers of identical items, especially where the same operations are combined in different ways to produce different products. It also has applications in service businesses that involve repetitive operations.
Installing a standard costing system entails designing an information system that can collect and analyze details about activities in such a way that the standards can be set and applied. In effects this means collecting quantitative data about the use of resources.
Implementation of ABC analysis The following steps are included in implementing the ABC analysis: 1. Categorize the items of inventories, establishing the expected use in un
Prepare cash budget?
Advantage of relevant cost
Anthony''s orchard
M/s ABC has an existing sales of Rs.50 lakhs and permits a credit period of 30 days to its customers. The firm cost of capital is 10% and the ratio of variable cost to sales is 85
explain briefly variable cost, fixed cost and semi- variable in the production cost of a productor service, giving example for each
A firm requires continuously monitoring and controlling its receivables to make sure that the dues are paid on the due date and no dues stay outstanding for a long period of time.
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
Explain Operating budgets These budgets relate to the dissimilar activities or operation of a firm the number of such budgets depends upon the size and nature of business. The
Working capital is a necessary requirement for any type of business activity. Banks in India nowadays constitute the main suppliers of working capital credit to any type of busines
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd