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

Uses of funds, Dividends                                                   ...

Dividends                                                                                        ................ Non-operating losses not passed through P and L A/c

Cost classification, Identify and explain many classification of costs for ...

Identify and explain many classification of costs for planning, control, performance evaluation and decision making.

Determine the expected rate of growth of dividends, General Motors has to r...

General Motors has to raise new capital in one of the following three ways. Using the income tax rate of 32%, find the after-tax cost of new capital in each case. (A) Sell commo

Cost accounting, raw an organization chart of any actual or hypothetical ma...

raw an organization chart of any actual or hypothetical manufacturing organization to show the position of management/cost accounting department within an organization and discuss

Absorption costing, Absorption Costing The process described in this s...

Absorption Costing The process described in this section by that net overheads are absorbed into production naturally enough is identified as absorption costing.  The absorpti

#title., prepare cost accounting sheet

prepare cost accounting sheet

Advantages and disadvantages of designing an ic, Discuss the advantages and...

Discuss the advantages and disadvantages of designing an IC using VHDL and synthesis compared with the traditional design approach using schematic capture, simulation and layout.

Critical thinking about cvp, The Critical Thinking about CVP is described b...

The Critical Thinking about CVP is described below CVP is more than just a mathematical tool/device to calculate values such as the break-even point. It can be used for the cri

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