What is scientific standards and variance analysis, Managerial Accounting

Assignment Help:

What is  Scientific standards and Variance analysis

The important steps of standard costing as described above may be summarized as follows;

1) Scientific standards: standard for each element of manufacturing cost-material, labor and overhead-are scientifically established. They act as bench-marks for performance.

2) Cost comparison: standard costs and actual costs are collected and compared to ascertain variances.

3) Variance analysis: variances are properly analyzed and explained. Significant variances are reported to top management.

4) Corrective actions: Corrective actions are taken to ensure that future performance will be in accordance with standards.

 


Related Discussions:- What is scientific standards and variance analysis

Coefficient of determination, Coefficient of Determination (r 2 ) If th...

Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l

Eoq model with quantity discounts, EOQ Model with quantity discounts Ci...

EOQ Model with quantity discounts Circumstances frequently occur where firms are able to obtain quantity discounts for large purchase orders. Buying in bulkiness has some merit

Linear Programming, Definition of Linear Programming What is Linear Program...

Definition of Linear Programming What is Linear Programming

Steps making decisiontree, Steps making DecisionTree A decision tree is...

Steps making DecisionTree A decision tree is a graphical representation of decision process indicating decision alternatives, states of nature, related probabilities and condit

State direct material cost standard, State Direct material cost standard ...

State Direct material cost standard The determination of direct material cost standard would involve: a) Determination of quantity standards and b) Determination of pric

Consulting project, CONSULTING PROJECT Pricing and Production Decision...

CONSULTING PROJECT Pricing and Production Decisions at PoolOut Ltd  PoolOut Ltd manufactures and sells a single product called the "RainIn", which is a patent-protected au

Facets of cash management, Cash management is related along with the manage...

Cash management is related along with the management of: Cash outflows and inflows of the firm Cash flows inside the firm Cash balances as financing deficit and inve

Inventory planning & control under uncertainty, Inventory planning & contro...

Inventory planning & control under uncertainty The basic EOQ model assumes that all the parameters (elements) in the model are certain (i.e. can be predicted precisely in advan

Medical office accounting final project, John Doe, MD A Business Simulation...

John Doe, MD A Business Simulation This simulation covers the transactions completed by John Doe, MD, a medical service business, which began on July 1 of the current year. Dr. D

Define briefly about pricing decision, Pricing decision Price may be de...

Pricing decision Price may be defined as the exchange of goods or services in terms of money. Without price firm can survive in the society. If money is not there exchange of g

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