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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.
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What is the Average Cost method of inventory valuation?
Average Cost Method: Under this method average cost is calculated by following farmula:Average cost of unit= Total cost of inventory / total number of units
Difference between histotical cost and standard cost?
Standard cost is the cost which is basis to measure the actual cost historical cost is the initial cost
What is cost variance?
Cost variance means the difference in actual cost from standard cost and very important part of standard costing and budgeting analysis.
What is an acceptable method of determining inventory cost under GAAP?
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
Is it depreciation variable cost or fixed cost?
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
What is the most cost effective house building technology?
Best method is standard framing with post and beam supports.
What is High-low method of variable cost and fixed cost?
High and low method is the method for separating fixed cost and variable cost from mixed cost.
Identify the research method that is the accepted standard?
scientific method is the accepted standard of research methodology.
What is material cost variance?
The material cost variance denoting the difference between the standard cost of materials and actual cost of matrials. The material cost variance is between the standard material cost for actual production in units and actual cost. The total cost is usually determined by two differenct factors of influence viz quantity of materials utilized/ required and price of the materials. The fluctuations in the material cost are only due to the fluctuations in the utility of materials due to many factors. Material cost variance can be computed into two different ways: DIRECT METHOD AND INDIRECT METHOD material cost variance= Standard cost of materials for actual output- actual cost of raw materials. MCV=(S Q AO X SP)-(AQ X AP) Indirect Method: material cost variance= Material price variance (MPV)+Material usage Variance
What is standard method?
The method that everyone has agreed to use.
The standard method of teaching in medieval universities was?
The standard method of teaching in medieval universities was through lectures given by professors, who would read from textbooks and comment on the material. Students would take notes and participate in discussions, but there was minimal interaction or debate. The focus was on rote learning and memorization of classical texts.
What is the Average Cost method of inventory valuation?
Average Cost Method: Under this method average cost is calculated by following farmula:Average cost of unit= Total cost of inventory / total number of units
Difference between histotical cost and standard cost?
Standard cost is the cost which is basis to measure the actual cost historical cost is the initial cost
What are the advantages of standard method of measurement?
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What is the differences between standard cost and marginal cost?
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
What is the difference between marginal cost and standard cost?
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
What are the new approaches used in cost accounting?
cost of production report lifo method fifo method
