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

Evaluate the overhead allocation rate, Vintage Auto Company manufactures pa...

Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut

Material cost, distinguish between bin card and store ledgre

distinguish between bin card and store ledgre

calculate the percent interest rate and effective cost, 1. The following t...

1. The following three one-year "discount" loans are available toyou: Loan A: $120,000 at a 7 percent discount rate Loan B: $110,000 at a 6 percent discount rate Loan

Issuance of stock - shares of common stock, 1. Issuance of stock Prepa...

1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: a. Jacks

Calculate the equal monthly payments and cost of financing, Calculate the e...

Calculate the equal monthly payments and the cost of financing on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe

Calculate manufacturing overhead for the year, Baka Corporation applies man...

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on t

Prepare the balance sheet, High Bhd acquired shares in two other companies ...

High Bhd acquired shares in two other companies as follows: Additional information: i) Goodwill on acquisition of Swift was impaired by RM80,000 as

Market-based transfer price optimal, Under what conditions is a market-base...

Under what conditions is a market-based transfer price optimal?

Calculate the contribution margin ratios, Problem 4-12 Multiproduct CVP [LO...

Problem 4-12 Multiproduct CVP [LO 4] Fidelity Multimedia sells audio and video equipment and car stereo products. After performing a study of fixed and variable costs in the prior

An impact on the breakeven, We've all experienced (or heard about) the chal...

We've all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, "Airline Industry Stock Outlook - August 2012"

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