Standard Costing

From Wikireedia
Jump to: navigation, search

Why?

  • A standard measurement - measurable - i.e variances
  • Too cumbersome to find out actual costs for product
  • To generate valuations
  • To aid decisions
  • To help set budgets

Standards are based on historic/reducted cost records, labor and overhead expenditures

  • Basic Standard Costs are not changed for long periods - allows comparison over years, (inflation? changes to product content, methods of operation)
  • Ideal Standards Costs - Standards based upon the most favourable conditions
  • Attainable - assuming avoidable down times, etc

Standard marginal costing or absorpton costing

Full standard costing is easier yet it disguises the control of Fixed Cost and is based upon budgeted levels of production that may not actually be met

Personal tools
Namespaces

Variants
Actions
Navigation
Toolbox