Standard costing system, Cost Accounting

Assignment Help:

Standard costing System has the following main advantages or benefits:

1. The process in itself often discloses inefficiencies, because the setting of standards requires a thorough analysis of all cost functions.

2. The process of setting standards forces management to plan efficient and economical operations.

3. Standard costs establish clearly defined lines of cost responsibility and authority.

4. Standard costs are likely to be an important aid to management in obtaining acceptable job performance by providing a clear idea as to what constitutes acceptable performance.

5. Variances between actual performance and standard costs facilitate control through the application of the principle of exception.

6. Faster reporting of operating data is possible; the shortened time between action and the availability of control information helps management to prevent the development of unfavorable cost trends.


Related Discussions:- Standard costing system

Standard cost, Standard Cost It is especially serious that you establi...

Standard Cost It is especially serious that you establish a link between standard budgets and costs. At this point, you require putting in your mind to standard costs one the

Cost estimation, Cost Estimation  Cost estimation may be defined with...

Cost Estimation  Cost estimation may be defined with 'a study that attempts to predict among costs and the activity level or cost driver that causes those costs. In practical

Material usage variance (muv), Material Usage Variance (MUV): This is t...

Material Usage Variance (MUV): This is the variation between the actual quantity of material consumed and standard quantity which should have been consumed, expressed in terms

Production needs in inventory for component a, Kenner company produces two ...

Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows; SR200 TX500 May 8,000 20,000 June 13,000 32,000 July 11,000 39,000 August 18,000

Determine investment allocation that maximises expect npv, Suppose that $4 ...

Suppose that $4 million is available for investment in three projects.  The probability distribution of the net present value earned from each project depends on how much is invest

Activity Based Costing, Multiple Versus Single Overhead Rates, Activity Dri...

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro p

Stores layout and location - material handling, Stores layout and location ...

Stores layout and location - Material Handling The layout of stores must ensure as a) For movement of material, ease of access out and in of stores b) The issue of peris

What will the bond sell, A 20-year bond pays a coupon of 8 percent per year...

A 20-year bond pays a coupon of 8 percent per year (coupon paid semi-annually). The bond has a par value of $1000. What will the bond sell for if the nominal YTM is: a) 10 per

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