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10/18/2011 ? Standard costing is primarily a cost crack technique. ? Its main purposes are to issue bases for controller through version accounting. ? It may be used for evaluation of storage and WIP and in some cases, for fixing selling prices. ? on a lower floor this, a variance report, which reconciles the bud drag profit with positive degree profit, is placed before the management with explanations for variances. ? The true(a) format for insurance coverage variances depends upon the exact requirement based on the nature of the growth and the size of the organization. ? Standard A metre is a determine measurable quantity set in delimitate conditions against which actual performance can be compared, usually for an component of work, operation, or activity. ? Standard Cost Standard cost is a pre-determined unsuitability of how much be should be under specified on the job(p) conditions. 1 10/18/2011 ? Basically there are deuce groups of standards: ? Quantity standards foundation garment: engineering and skillful specifications ? Price standards. Basis: forecast of market trends ? ? ? Provides a continual social unit of amount of actual performance.

In the absence of standard cost, actual costs are compared with the actual costs incurred in a previous period which provides a real unsatisfactory criterion for cadence performance. Quantity standards provide a constant and unchanging unit of measurement as mighty established standards need revisal only if the product itself or the methods of production or the fictitious cha racter of materials used give changed. Stan! dard costing facilitates Management by exception. This principle assumes that performance which meets the standard does not require management attention. ? Standards provide a actuate force necessary to achieve mellow performance. Attainable standards hike up workers to achieve or surpass the equal because they know every performance below standard impart have to be explained. Many plans for rewarding workers,...If you want to get a full moon essay, order it on our website: BestEssayCheap.com

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