0
What else can I help you with?
What is achieved by monitoring standard costs?
Standard costs are monitored as a basis for determining the extent to which expectations are realized.
Importance of standard costing?
A valuable management tool, standard costing is part of cost accounting. Rather than using actual costs for direct material, labor and manufacturing overhead, standard costs are used to easily track variances and estimate profit.Though actual costs are still paid, standard costing is often used for inventories and cost of goods sold. The difference between standard and actual costs are known as variances. These variances are what make standard costing such a valuable practice for management. Management can quickly become aware of changes in budgeted costs by tracking the variances.When standard costing is used, you will often hear the terms unfavorable or favorable variance. This refers to changes in actual costs in relation to planned or standard costs. A favorable variance takes place when actual costs dip below standard costs. Conversely, if actual costs rise above standards, the variance is unfavorable.In regards to manufacturing companies, standard costs would first be seen as individual parts or pieces of the finished product. This means that the final standard cost will be the sum of the standard costs of each of the individual pieces of the product.
What is standard cost method?
Under standard cost method, standard costs for material labor and overheads are determined first and all these costs are charged to production on that standard costs and quantity basis and after that variance analysis is done to find out the reasons for differences in actual costs with standard costs as basis for analysis.
What would happen if the business costs and budget are not monitored?
In what sense? Work? Personal finances?
Why are Athletes monitored?
They are monitored ever so often to see if they are taking steroids, which is basically cheating.
How are standard costs established?
Standard costs are costs established through identifying an objective relationship between specified inputs and expected outputs.
What is the difference between standard cost and estimated cost?
Estimates are the expressions of of opinion based upon past experiences whereas the standard costs are based upon standard rate that are very carefully developed and set as scientifically as possible. However, both estimated costs and standard costs are related to future period of time but there are some significant differences between them. Some major differences between standard costs and estimated costs are listed below:1. Estimated costs are the expressions of opinion based upon experience. Standard costs are based upon standard rates that are carefully developed and set as scientifically as possible.2. Estimated costs are used by those firms that follow historical costing system. Standard costs are used by those organizations that follow standard costing.3. Estimated costs are based on actual costs and anticipated costs. Standard costs are fixed after scientific analysis of relevant cost elements.4. Estimated costs are based on approximation. Standard costs are based upon specifications.5. Estimated costs are normally used as guideline for price determination, quoting the selling price etc. Main purpose of standard costs is to serve as a tool for cost control.
Comparing actual costs with standard costs is known as?
variancce analysis
What is standar?
Under standard costing standard costs are determined which are required to produce one unit of product and then variance analysis is done to find out if there is any variations form standards costs and actual costs and then try to eliminate those variations. The whole process is called standard costing.
What can happen if costs and budget are not monitored?
These are costs that change according to output .The costs change directly according to how many products are made .An example of this is a business producing footballs will have varying requirements for amounts of rubber, lead and valves depending on how many footballs it makes .
What is standared costing?
Under standard costing standard costs are determined which are required to produce one unit of product and then variance analysis is done to find out if there is any variations form standards costs and actual costs and then try to eliminate those variations. The whole process is called standard costing.
What are the approximate costs of wireless burglar alarm systems?
The it you are getting it monitored then the alarm would be leased for you for a low price and it is tacked on montly with the mointoring fees.
