Chapter4 Std Costing
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The document discusses standard costing variances at Ren Corporation's Cutting Department. It provides standards and actual data for materials, labor, and overhead costs. Variances are then calculated between actual and standard quantities, prices, spending rates, and fixed overhead amounts. Price, quantity, rate, efficiency, spending, budget, and volume variances are all identified as favorable or unfavorable based on the analysis.
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Standard costing
Standard costing is a technique that uses predetermined standards for costs and revenues to control performance through variance analysis. Standards are established for inputs and outputs and are used to assess performance, control costs, motivate staff, and provide guidance to improve performance. Variances measure the difference between actual and standard costs and revenues and are classified into material, labor, overhead, and sales categories to identify reasons for non-standard performance. Material variances include price, usage, mix, and yield components.
Standard Costing - Uses & Limitations
This presentation covers what standard costing is, its uses and limitations. Also included is a small case solved case study for better understanding of the topic.
Standard Costing:The complete concept.
Standard costing involves setting standards for materials, labor, and overhead and comparing actual costs to the standards to calculate variances. It has several advantages as a management tool including cost control, finding inefficiencies, and measuring efficiency. Some limitations include difficulty setting standards for non-standard products and not considering all circumstances when setting standards. The document provides examples of calculating variances for materials, labor, and overhead costs based on standard and actual amounts. It also discusses classification of standards, revising standards, and advantages and limitations of standard costing.
Standard Costing & Variances
Standard costing is a system that uses predetermined costs to evaluate actual costs and operational performance. It sets standards for direct materials, direct labor, and factory overheads and calculates variances between actual and standard costs. Variance analysis identifies reasons for differences from standards and helps improve operations, reduce costs through error corrections, and deploy resources effectively. Standard costing provides rules and guidelines for production, allows performance comparisons, and assists with budgeting, financial reporting, and cost management to increase efficiency and productivity. However, setting accurate standards is technical and not easy, and meeting standards should not be the only target.
Standard costing and variance analysis case study
The document discusses standard costing and variance analysis through two case studies:
Case A examines the effect of assumed standard labor levels at Harden Company. Management adopted a dual standard system using different standards for motivation and cost reporting.
Case B analyzes a $2,000 under-applied factory overhead variance at Strayer Company. The variance was likely due to unfavorable spending and idle capacity variances as production was below budgeted levels.
Standard costing
Standard costing involves setting predetermined norms or benchmarks for direct materials, direct labor, and overhead costs for manufacturing products. Standards are planned costs that are used for budgeting, controlling costs, promoting cost reduction, simplifying cost accounting, and assigning inventory costs. The key purposes of standard costs are establishing budgets, controlling costs, and motivating efficiency. Some advantages include making managers cost-conscious, reducing costs through economies, and simplifying accounting procedures. Standards must be carefully set based on past averages or engineering studies. Master standard cost cards detail the standard costs for materials, labor, and overhead for each product. Variances can then be analyzed to compare actual costs to standards.
Standard Costing with CA Megha Shah
Standard costing is a technique used to control costs and revenues by using variance analysis. It involves setting standard costs for inputs and outputs, collecting actual costs, and calculating variances between standard and actual costs. Variances can be analyzed to identify reasons for differences and take corrective actions if needed. The document provides examples of calculating variances for materials, labor, variable overhead, fixed overhead, and sales under the standard costing technique.
Standard costing technique 1
This document discusses standard costing techniques and variance analysis. It defines standard costs as predetermined estimates of costs that are compared to actual costs incurred. Variances are the differences between standard and actual costs. Five types of standards are described - basic, ideal, currently attainable, current, and expected. Variance analysis involves sub-analyzing variances into constituent parts like material and labor variances. Material and labor variances include total, price, usage/efficiency, and idle time variances. Formulas and examples are provided to demonstrate calculating each variance type.
Recommended
Standard costing
Standard costing is a technique that uses predetermined standards for costs and revenues to control performance through variance analysis. Standards are established for inputs and outputs and are used to assess performance, control costs, motivate staff, and provide guidance to improve performance. Variances measure the difference between actual and standard costs and revenues and are classified into material, labor, overhead, and sales categories to identify reasons for non-standard performance. Material variances include price, usage, mix, and yield components.
Standard Costing - Uses & Limitations
This presentation covers what standard costing is, its uses and limitations. Also included is a small case solved case study for better understanding of the topic.
Standard Costing:The complete concept.
Standard costing involves setting standards for materials, labor, and overhead and comparing actual costs to the standards to calculate variances. It has several advantages as a management tool including cost control, finding inefficiencies, and measuring efficiency. Some limitations include difficulty setting standards for non-standard products and not considering all circumstances when setting standards. The document provides examples of calculating variances for materials, labor, and overhead costs based on standard and actual amounts. It also discusses classification of standards, revising standards, and advantages and limitations of standard costing.
Standard Costing & Variances
Standard costing is a system that uses predetermined costs to evaluate actual costs and operational performance. It sets standards for direct materials, direct labor, and factory overheads and calculates variances between actual and standard costs. Variance analysis identifies reasons for differences from standards and helps improve operations, reduce costs through error corrections, and deploy resources effectively. Standard costing provides rules and guidelines for production, allows performance comparisons, and assists with budgeting, financial reporting, and cost management to increase efficiency and productivity. However, setting accurate standards is technical and not easy, and meeting standards should not be the only target.
Standard costing and variance analysis case study
The document discusses standard costing and variance analysis through two case studies:
Case A examines the effect of assumed standard labor levels at Harden Company. Management adopted a dual standard system using different standards for motivation and cost reporting.
Case B analyzes a $2,000 under-applied factory overhead variance at Strayer Company. The variance was likely due to unfavorable spending and idle capacity variances as production was below budgeted levels.
Standard costing
Standard costing involves setting predetermined norms or benchmarks for direct materials, direct labor, and overhead costs for manufacturing products. Standards are planned costs that are used for budgeting, controlling costs, promoting cost reduction, simplifying cost accounting, and assigning inventory costs. The key purposes of standard costs are establishing budgets, controlling costs, and motivating efficiency. Some advantages include making managers cost-conscious, reducing costs through economies, and simplifying accounting procedures. Standards must be carefully set based on past averages or engineering studies. Master standard cost cards detail the standard costs for materials, labor, and overhead for each product. Variances can then be analyzed to compare actual costs to standards.
Standard Costing with CA Megha Shah
Standard costing is a technique used to control costs and revenues by using variance analysis. It involves setting standard costs for inputs and outputs, collecting actual costs, and calculating variances between standard and actual costs. Variances can be analyzed to identify reasons for differences and take corrective actions if needed. The document provides examples of calculating variances for materials, labor, variable overhead, fixed overhead, and sales under the standard costing technique.
Standard costing technique 1
This document discusses standard costing techniques and variance analysis. It defines standard costs as predetermined estimates of costs that are compared to actual costs incurred. Variances are the differences between standard and actual costs. Five types of standards are described - basic, ideal, currently attainable, current, and expected. Variance analysis involves sub-analyzing variances into constituent parts like material and labor variances. Material and labor variances include total, price, usage/efficiency, and idle time variances. Formulas and examples are provided to demonstrate calculating each variance type.
Standard Costing
Definition of standard cost, target costing, kaizen costing and some mathematical problem with requirements.
Standard costing presentation
Standard costing is a technique that involves setting predetermined standards for costs and comparing them to actual costs. Standards are set for materials, labor, overhead and sales prices/margins. Variances between standards and actuals are analyzed to identify reasons for differences and take corrective actions. It helps management evaluate performance, control costs, set budgets and motivate staff. Some key advantages include cost control, delegation, efficiency improvements, and anticipating future costs and profits. Limitations include requiring technical skills and difficulty separating controllable vs. uncontrollable variances.
Standard costing
The document discusses standard costing, which involves setting standards for costs and revenues for controlling costs through variance analysis. It describes establishing standards for different cost elements like direct materials, direct labor, and overheads. Variances between actual and standard costs are analyzed to identify causes. Variance analysis helps reduce costs, measure efficiency, and control prices. The document outlines the standard costing process and advantages like effective cost control and developing cost consciousness.
Standard costing - cost analysis
Special For Jaipur national university Student || BBA || Standard Costing || Cost Analysis || Presentation
Standard costing
Standard costs are predetermined costs that are used for planning, control, and performance evaluation. Actual costs are compared to standard costs to calculate variances. This document provides an example of calculating variances for material, labor, overhead and other expenses based on standard and actual data for a company. It determines cost, revenue, and profit variances and reconciles the actual profit to the standard profit through a variance analysis. The variances are then analyzed to identify reasons for differences in order to take corrective actions and improve operations.
Standard Costing
Standard costing involves setting cost standards for business activities and analyzing actual costs against these standards. Variances represent the differences between actual and standard costs, and can be favorable if actual costs are lower or unfavorable if higher. Variances are classified into categories like direct material, labor, and overhead variances.
Standard cost, labor & material variance
Standards are benchmarks used to measure performance. In managerial accounting, standards relate to the quantity and cost of inputs used in production. Quantity standards specify the amount of inputs needed, while cost standards specify the price paid per input unit. Variance analysis involves comparing actual performance to standards, analyzing differences, and taking corrective actions. Manufacturing companies develop detailed standard costing systems with standards for materials, labor, and overhead for each product. Standards are set through collaboration between different departments and by reviewing past production records. Material, labor, and overhead variances are calculated by comparing actual inputs and costs to standards. Variances identify where costs differ from standards so issues can be addressed.
Standard costing and its types
Standard costing is a management tool used to plan and control costs. It establishes predetermined standard costs for materials, labor, and overhead for each product or service. Actual costs are compared to standard costs to calculate variances, which tell management if profits will be higher or lower than planned. Standard costs can be ideal, attainable, current, basic, or normal depending on the business environment and goals. While difficult to apply at McDonald's due to product variability, standardizing recipes and reducing human intervention helped make costs more predictable.
Standard costing
Standard costing is a specialized costing technique used for cost control that establishes predetermined costs known as standards that are used as benchmarks to measure performance and control costs. Variances between actual and standard costs are analyzed to identify reasons for differences and assign responsibility so corrective measures can be taken. Standard costing is useful for decision making, production planning, policy formulation, and proper budgeting as it provides feedback on performance.
Budgetory Control System and Cost Control
Budgeting and Budgetary control – Standard costing and variance analysis: Cost control and cost reduction:
Introduction to cost control – cost reduction- fields covered by cost reduction- tools and techniques for cost reduction
Standard costing PPT
This document discusses standard costing and variance analysis. It defines standard costs as predetermined costs that determine what a product should cost under given circumstances. Standard costing involves setting standards for each cost element and comparing actual costs to standards to calculate variances. Variances are analyzed to identify reasons for differences from standards and take corrective actions. The document outlines different types of cost variances including direct material, direct labor, and overhead variances. It provides formulas to calculate each variance and explains how variances are classified as favorable or unfavorable.
Standard Costing
Standard costing involves establishing standard costs, comparing them to actual costs, and analyzing variances. It provides several benefits including aiding management, measuring efficiency, and promoting cost consciousness. Variance analysis examines differences between standard and actual material and labor costs. Material variances include material cost, price, usage, mix, and yield variances. Labor variances include labor cost, rate, efficiency, mix, and yield variances.
Variance Analysis in Standard Costing
This document is a project report submitted by a student to the University of Mumbai for their M.Com degree. It discusses variance analysis in standard costing. The introduction defines standard costs and their purpose in performance measurement, control, stock valuation and establishing selling prices. It also discusses the origins and development of cost accounting. The report will analyze variances between actual and standard costs and discuss the advantages and disadvantages of standard costing.
Standard Costing Operational Performance Measures And
A cost management system measures the costs of activities, identifies unnecessary costs, and finds ways to improve performance. It has three parts: predetermined standards of performance, actual performance measures, and comparisons of standards to actuals with corrective actions. Managers focus on significant cost variances to determine their causes and reduce problems. Standards can be set through historical analysis, task analysis, or a combined approach. Direct material and labor variances are calculated to measure differences between actual and standard quantities and prices used and costs.
Standard Costing Day2
The document discusses standard costing, which is a management accounting technique used to analyze variances. It outlines the steps in standard costing as setting standard costs, studying actual costs, comparing actuals to standards, analyzing variances, fixing responsibilities, and taking corrective action. The document also compares budgetary control to standard costing, noting their similarities like basing them on standards, and differences like standard costing focusing more on root causes of variances. It defines types of standards and provides examples of calculating material, labor, and overhead variances.
Standard costing setting standards and analysis of variance
This document discusses standard costing and variance analysis. It defines standard costs as predetermined costs for manufacturing a unit based on expected materials, labor hours, and plant capacity usage. Standard costs are used for budgeting, controlling costs, promoting cost reduction, and inventory valuation. The document then describes how to set physical, materials, labor, and overhead standards. It explains different types of variances for materials, labor, and overhead costs to analyze deviations from standards and measure performance. Methods like two variance, three variance, and four variance are presented for overhead variance analysis.
Chapter 08 Standard Costing
1.1 Understand the concept of Standard Cost and Standard Costing
1.2 Understand the objectives and utility of Standard Costing
1.3 Compute and analyze various variances.
Standard costing
Standard costing involves establishing predetermined estimates of the costs of products or services, collecting actual costs, and comparing actual costs to the estimates. Standards are set for materials, labor, overhead, and selling prices/margins based on historical data, task analysis, and production process analysis. Material and labor standards consider factors like supplier prices, wage rates, and efficiency levels. Overhead standards may be based on a rate per labor hour. Comparing actuals to standards highlights variances that need management attention to control costs.
Management accounting overhead variance
This document discusses the calculation and analysis of variances in overhead costs. It begins with an introduction to variance analysis and classification of variances as favorable or unfavorable. It then describes the different types of overhead variances including variable overhead variances, fixed overhead variances, and combined overhead variances. Specific formulas are provided for calculating the variable overhead cost variance, variable overhead expenditure variance, fixed overhead cost variance, and other overhead variances. An example is also shown to illustrate the calculation of a variable overhead expenditure variance.
Ca chap 13 standard costing&variance analysis(2)
This document discusses standard costing and variance analysis techniques. Standard costing involves setting predetermined standard costs that products should attain under given conditions. Variances measure the difference between actual and standard costs/results and can be classified in various ways, including functionally, based on measurement, results, and controllability. Key variances include material, labor, variable and fixed overhead variances. Standard costing is used for cost control, pricing, performance evaluation, and management objectives.
Standrad costing
Here are the steps to calculate direct labor variances for Hanson Inc:
1. Standard hours to produce 1,000 Zippies = 1,000 x 1.5 = 1,500 hours
2. Standard direct labor cost = Standard hours x Standard rate
= 1,500 hours x $10/hour = $15,000
3. Actual direct labor hours worked last week = 1,550 hours
4. Actual direct labor cost = Actual hours x Actual rate
= Let's assume the actual rate is $10/hour
= 1,550 hours x $10/hour = $15,500
5. Labor efficiency variance = Standard hours - Actual hours
= 1,500 -
Installation of costing system
Installation of a costing system is an investment rather than an expense because the rewards are greater than the costs. The costing system should be designed to meet the specific needs of the business, not the other way around. There are general considerations for installing a costing system, such as objectives, area of operation, data collection, cost records, and control methods. Specific considerations include business size and nature, products, organization structure, and functional studies. Successful implementation requires top management support, staff cooperation, adequate training, and managing costs of installation and operation. The system should be simple, flexible, minimally disruptive, and gradually introduced to build confidence.
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Standard Costing
Definition of standard cost, target costing, kaizen costing and some mathematical problem with requirements.
Standard costing presentation
Standard costing is a technique that involves setting predetermined standards for costs and comparing them to actual costs. Standards are set for materials, labor, overhead and sales prices/margins. Variances between standards and actuals are analyzed to identify reasons for differences and take corrective actions. It helps management evaluate performance, control costs, set budgets and motivate staff. Some key advantages include cost control, delegation, efficiency improvements, and anticipating future costs and profits. Limitations include requiring technical skills and difficulty separating controllable vs. uncontrollable variances.
Standard costing
The document discusses standard costing, which involves setting standards for costs and revenues for controlling costs through variance analysis. It describes establishing standards for different cost elements like direct materials, direct labor, and overheads. Variances between actual and standard costs are analyzed to identify causes. Variance analysis helps reduce costs, measure efficiency, and control prices. The document outlines the standard costing process and advantages like effective cost control and developing cost consciousness.
Standard costing - cost analysis
Special For Jaipur national university Student || BBA || Standard Costing || Cost Analysis || Presentation
Standard costing
Standard costs are predetermined costs that are used for planning, control, and performance evaluation. Actual costs are compared to standard costs to calculate variances. This document provides an example of calculating variances for material, labor, overhead and other expenses based on standard and actual data for a company. It determines cost, revenue, and profit variances and reconciles the actual profit to the standard profit through a variance analysis. The variances are then analyzed to identify reasons for differences in order to take corrective actions and improve operations.
Standard Costing
Standard costing involves setting cost standards for business activities and analyzing actual costs against these standards. Variances represent the differences between actual and standard costs, and can be favorable if actual costs are lower or unfavorable if higher. Variances are classified into categories like direct material, labor, and overhead variances.
Standard cost, labor & material variance
Standards are benchmarks used to measure performance. In managerial accounting, standards relate to the quantity and cost of inputs used in production. Quantity standards specify the amount of inputs needed, while cost standards specify the price paid per input unit. Variance analysis involves comparing actual performance to standards, analyzing differences, and taking corrective actions. Manufacturing companies develop detailed standard costing systems with standards for materials, labor, and overhead for each product. Standards are set through collaboration between different departments and by reviewing past production records. Material, labor, and overhead variances are calculated by comparing actual inputs and costs to standards. Variances identify where costs differ from standards so issues can be addressed.
Standard costing and its types
Standard costing is a management tool used to plan and control costs. It establishes predetermined standard costs for materials, labor, and overhead for each product or service. Actual costs are compared to standard costs to calculate variances, which tell management if profits will be higher or lower than planned. Standard costs can be ideal, attainable, current, basic, or normal depending on the business environment and goals. While difficult to apply at McDonald's due to product variability, standardizing recipes and reducing human intervention helped make costs more predictable.
Standard costing
Standard costing is a specialized costing technique used for cost control that establishes predetermined costs known as standards that are used as benchmarks to measure performance and control costs. Variances between actual and standard costs are analyzed to identify reasons for differences and assign responsibility so corrective measures can be taken. Standard costing is useful for decision making, production planning, policy formulation, and proper budgeting as it provides feedback on performance.
Budgetory Control System and Cost Control
Budgeting and Budgetary control – Standard costing and variance analysis: Cost control and cost reduction:
Introduction to cost control – cost reduction- fields covered by cost reduction- tools and techniques for cost reduction
Standard costing PPT
This document discusses standard costing and variance analysis. It defines standard costs as predetermined costs that determine what a product should cost under given circumstances. Standard costing involves setting standards for each cost element and comparing actual costs to standards to calculate variances. Variances are analyzed to identify reasons for differences from standards and take corrective actions. The document outlines different types of cost variances including direct material, direct labor, and overhead variances. It provides formulas to calculate each variance and explains how variances are classified as favorable or unfavorable.
Standard Costing
Standard costing involves establishing standard costs, comparing them to actual costs, and analyzing variances. It provides several benefits including aiding management, measuring efficiency, and promoting cost consciousness. Variance analysis examines differences between standard and actual material and labor costs. Material variances include material cost, price, usage, mix, and yield variances. Labor variances include labor cost, rate, efficiency, mix, and yield variances.
Variance Analysis in Standard Costing
This document is a project report submitted by a student to the University of Mumbai for their M.Com degree. It discusses variance analysis in standard costing. The introduction defines standard costs and their purpose in performance measurement, control, stock valuation and establishing selling prices. It also discusses the origins and development of cost accounting. The report will analyze variances between actual and standard costs and discuss the advantages and disadvantages of standard costing.
Standard Costing Operational Performance Measures And
A cost management system measures the costs of activities, identifies unnecessary costs, and finds ways to improve performance. It has three parts: predetermined standards of performance, actual performance measures, and comparisons of standards to actuals with corrective actions. Managers focus on significant cost variances to determine their causes and reduce problems. Standards can be set through historical analysis, task analysis, or a combined approach. Direct material and labor variances are calculated to measure differences between actual and standard quantities and prices used and costs.
Standard Costing Day2
The document discusses standard costing, which is a management accounting technique used to analyze variances. It outlines the steps in standard costing as setting standard costs, studying actual costs, comparing actuals to standards, analyzing variances, fixing responsibilities, and taking corrective action. The document also compares budgetary control to standard costing, noting their similarities like basing them on standards, and differences like standard costing focusing more on root causes of variances. It defines types of standards and provides examples of calculating material, labor, and overhead variances.
Standard costing setting standards and analysis of variance
This document discusses standard costing and variance analysis. It defines standard costs as predetermined costs for manufacturing a unit based on expected materials, labor hours, and plant capacity usage. Standard costs are used for budgeting, controlling costs, promoting cost reduction, and inventory valuation. The document then describes how to set physical, materials, labor, and overhead standards. It explains different types of variances for materials, labor, and overhead costs to analyze deviations from standards and measure performance. Methods like two variance, three variance, and four variance are presented for overhead variance analysis.
Chapter 08 Standard Costing
1.1 Understand the concept of Standard Cost and Standard Costing
1.2 Understand the objectives and utility of Standard Costing
1.3 Compute and analyze various variances.
Standard costing
Standard costing involves establishing predetermined estimates of the costs of products or services, collecting actual costs, and comparing actual costs to the estimates. Standards are set for materials, labor, overhead, and selling prices/margins based on historical data, task analysis, and production process analysis. Material and labor standards consider factors like supplier prices, wage rates, and efficiency levels. Overhead standards may be based on a rate per labor hour. Comparing actuals to standards highlights variances that need management attention to control costs.
Management accounting overhead variance
This document discusses the calculation and analysis of variances in overhead costs. It begins with an introduction to variance analysis and classification of variances as favorable or unfavorable. It then describes the different types of overhead variances including variable overhead variances, fixed overhead variances, and combined overhead variances. Specific formulas are provided for calculating the variable overhead cost variance, variable overhead expenditure variance, fixed overhead cost variance, and other overhead variances. An example is also shown to illustrate the calculation of a variable overhead expenditure variance.
Ca chap 13 standard costing&variance analysis(2)
This document discusses standard costing and variance analysis techniques. Standard costing involves setting predetermined standard costs that products should attain under given conditions. Variances measure the difference between actual and standard costs/results and can be classified in various ways, including functionally, based on measurement, results, and controllability. Key variances include material, labor, variable and fixed overhead variances. Standard costing is used for cost control, pricing, performance evaluation, and management objectives.
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Standrad costing
Here are the steps to calculate direct labor variances for Hanson Inc:
1. Standard hours to produce 1,000 Zippies = 1,000 x 1.5 = 1,500 hours
2. Standard direct labor cost = Standard hours x Standard rate
= 1,500 hours x $10/hour = $15,000
3. Actual direct labor hours worked last week = 1,550 hours
4. Actual direct labor cost = Actual hours x Actual rate
= Let's assume the actual rate is $10/hour
= 1,550 hours x $10/hour = $15,500
5. Labor efficiency variance = Standard hours - Actual hours
= 1,500 -
Installation of costing system
Installation of a costing system is an investment rather than an expense because the rewards are greater than the costs. The costing system should be designed to meet the specific needs of the business, not the other way around. There are general considerations for installing a costing system, such as objectives, area of operation, data collection, cost records, and control methods. Specific considerations include business size and nature, products, organization structure, and functional studies. Successful implementation requires top management support, staff cooperation, adequate training, and managing costs of installation and operation. The system should be simple, flexible, minimally disruptive, and gradually introduced to build confidence.
Installation of costing system
Installation of a costing system is an investment rather than an expense because the rewards are greater than the costs. The costing system should be designed to meet the specific needs of the business, not the other way around. There are general considerations for installing a costing system, such as objectives, area of operation, data collection, cost records, and control methods. Specific considerations include business size and nature, products, organization structure, and functional studies. Successful implementation requires top management support, staff cooperation, adequate training, and managing costs of installation and operation. The system should be simple, flexible, minimally disruptive, and gradually introduced to build confidence.
Cost accounting
Cost accounting is the process of recording, classifying, allocating and reporting costs to provide information to managers. It determines unit costs to help set prices and control costs. Management uses cost information to make production policy decisions. Managerial accounting provides internal data for management while financial accounting provides external data for outsiders. Both use the same accounting principles but differ in purpose and scope. Cost accounting controls costs through standard costing and budgeting.
What is cost accounting
This document defines and compares cost accounting, management accounting, and financial accounting. It also discusses the objectives, nature, and scope of cost accounting and how cost accounting aids management. Cost accounting is defined as classifying, recording, and allocating costs to determine cost and profitability. Management accounting provides accounting information to aid management decision making. Financial accounting deals with financial resources and obligations to external parties. The document outlines key differences between cost accounting, management accounting, and financial accounting.
Labour cost
This document discusses various aspects of labour cost management including direct and indirect labour, labour turnover, time keeping, overtime, payroll, idle time, and remuneration. It describes different methods for tracking time and attendance as well as calculating wages. Various incentive plans are outlined, including Halsey, Rowan, and Merrick's differential piece rate systems. The document also examines causes and reduction of labour turnover through suitable wage policies and welfare measures.
Price management and pricing decisions
This document discusses price management and pricing strategies. It defines price as the cost plus profit that a consumer is willing to pay. Pricing decisions are influenced by internal factors controlled by the company and external uncontrolled factors like demand, competition and legal regulations. The objectives of pricing include maximizing profits, market penetration, and flexibility. Pricing methods include cost-based methods, demand-based methods, and competition-based methods. For new products, companies may use skimming pricing, penetration pricing, or price discrimination. Pricing services also considers factors like the market structure, competitors' prices, and regulations.
Unit 13 MFPT - Pricing
This document discusses pricing decisions and economic theory. It covers determining pricing based on demand elasticity and using marginal cost and marginal revenue to maximize profits. The role of costs in pricing for price takers and price setters in both the short and long run is examined. Product mix decisions and different pricing policies like cost-plus, skimming, and penetration pricing are also summarized.
Labour cost
This document discusses various aspects of labour cost, including direct labour, indirect labour, labour turnover, and idle time. Direct labour refers to workers who directly produce goods, while indirect labour provides supporting functions. Labour turnover measures the rate at which workers leave and are replaced. Idle time represents time workers are paid for but do not spend on production, which can be normal or abnormal depending on its controllability. The document also covers topics like casual workers, out-workers, and overtime pay.
Cost Accounting - Nature & Scope
Cost accounting arose to overcome the limitations of financial accounting in providing useful cost data and information to management for planning, decision-making, and control. Financial accounting only provides aggregate, past-oriented data and does not adequately account for factors like price changes, wastage, or provide data needed for setting prices. Cost accounting develops costing principles, methods, and techniques to ascertain detailed product and process costs, enable cost control, and provide relevant information to management. It has grown to encompass costing, cost accounting, budgeting, standard costing, and cost auditing. While related, cost accounting has a broader scope focused on internal reporting, compared to the external reporting focus of financial accounting.
Labour cost accounting
This document discusses labour cost accounting. It defines direct and indirect labour costs and explains they are a significant production cost. The purposes of labour cost accounting are for wages calculation, financial reporting, management decisions, and control. Labour costs include basic wages, overtime, idle time, and labour turnover. Remuneration methods comprise fixed salaries, time-based pay, and piecework. Idle time and labour turnover are also defined.
Responsibility Accounting
Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
The basics of cost analysis ppt @ mba
The document provides an overview of cost analysis, including defining costs, analyzing major cost elements in a proposal, and evaluating profit. It discusses direct vs indirect costs, acceptable cost estimating methods, and templates for breaking down costs. Key steps in cost analysis include understanding requirements, reviewing the contractor's proposal and basis of estimate, and evaluating profit using weighted guidelines or statutory limits. The purpose of cost analysis is to determine if proposed costs represent reasonable economy and efficiency.
Master budget
Budgets provide a comprehensive financial overview of planned operations and help managers communicate objectives across an organization. The master budget is a detailed analysis that summarizes activities for the first year of a long-range plan. It includes an operating budget focusing on the income statement and a financial budget focusing on cash flows. The key steps in preparing the master budget are to create basic data like sales and expense budgets, then use that data to prepare the operating and financial budgets.
Budget, Budgeting & budgetary control
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1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
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8) Difference in Traditional & Zero based budgeting.
Basic Concepts of Cost Accounting-B.V.Raghunandan
This document provides definitions and classifications related to management accounting and cost accounting. It defines management accounting as identifying, measuring, and communicating financial information to help managers achieve organizational objectives. It also defines cost accounting and notes the close relationship between management and cost accounting. It then classifies costs by elements, traceability, functions, and behavior. It defines cost centers and cost units, and provides an example cost sheet. It concludes by defining various direct and indirect costs in more detail.
Labour Cost Control in Cost Accounting-B.V.Raghunandan
The document discusses various aspects of labor cost accounting and management. It covers topics like direct and indirect labor, time keeping, time recording methods, time booking, idle time causes and measurement, overtime causes and authorization, labor turnover measurement and causes, wage systems like time rate and piece rate, and incentive plans like Taylor's differential piece rate system.
Cost concept
Cost accounting is the process of tracking and recording costs associated with manufacturing or producing goods and services. It helps management make informed business decisions and set prices through cost analysis and control. The key objectives of cost accounting are to determine the actual cost of products, identify inefficiencies, provide cost comparisons, and analyze trends to help set production policies and programs. Maintaining an effective cost accounting system provides businesses with valuable information for activities like profitability analysis, inventory valuation, budgeting, and financial reporting.
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The document summarizes standard costing and variance analysis.
Standard costing involves setting standard costs for direct materials, direct labor, and factory overhead based on expected efficiencies. Variances measure the difference between actual and standard costs. There are variances for direct material price and usage, direct labor rate and efficiency, and factory overhead which includes a controllable variance and volume variance. Variance analysis identifies reasons for differences to improve performance.
Projecto variance
The document discusses analyzing and reporting variances from standards. It defines a variance as the difference between an actual result and the corresponding budgeted amount. It describes two types of variances: favorable variances which increase operating income relative to the budget, and unfavorable variances which decrease operating income relative to the budget. The document also discusses static budget variances, flexible budget variances, sales volume variances, and how variances are computed.
Standard Costing
Standard costing involves setting predetermined expected costs for cost components like direct materials, direct labor, and factory overhead. Variances are calculated as the difference between actual and standard costs. This includes direct material, direct labor, and factory overhead variances. The direct material variance has a price and usage component. The factory overhead variance separates variable from fixed costs, with the controllable variance measuring variable cost efficiency and volume variance measuring fixed cost utilization.
M a review problem mbaa
The document provides costs associated with Chippen Corporation's furniture manufacturing business, including tables. It lists various direct material, direct labor, and manufacturing overhead costs on a per table or annual basis. These costs must be classified as variable costs, fixed costs, product costs, period costs, or opportunity costs based on how they behave with respect to the number of tables produced in a year.
Standard costing and Variance Analysis
Standard costing is a technique used to measure differences between actual and expected costs. A variance is the difference between standards and actual performance. Material, labor, and overhead variances can be classified by function, measurement, or result. Material variances include price, usage, mix, and yield variances. Labor variances include rate, efficiency, idle time, mix, and yield variances. Variances are either favorable if actual is lower than standard or adverse if actual exceeds standard. Examples show how to calculate variances for a manufacturing company.
Managerial accounting term project workbook
The document presents income statements for Sparkle Company using different costing methods - plantwide overhead, departmental overhead, and activity-based costing. It shows the product costs and gross profits for three product styles. Under activity-based costing, specific activities are traced to products based on cost drivers like production runs or machine hours. This allows a more accurate allocation of overhead costs than traditional costing methods.
Ch04 m 06_09_10
The document provides solutions to brief exercises on managerial accounting topics including:
1) Calculating predetermined overhead rates and applying overhead using direct labor hours.
2) Differences between traditional and activity-based costing systems, with ABC assigning more overhead to low-volume products.
3) Appropriate cost drivers for various manufacturing activities like materials handling, machine setups, and quality control.
Chapter 10
I apologize, upon further review I do not have enough information provided to fully solve part 2 of this exercise. The standard hours allowed and standard rate per hour are given, but the actual hours of input and actual rate per hour are not stated. Please provide those values and I will be happy to complete the variance analysis for the direct labor costs.
STANDARD COSTING & VARIANCE ANALYSIS (4).pptx
a complete analysis on standard costing & variance analysis.
Cost accounting: a project on cost analysis & budgeting
This is a project i worked with 3 other students. This project deals with the analysis of costs of manufacturing, pricing, budgeting. The product that we have chosen was Wooden Hanger.
Standard-Costing-Variance-Analysis.ppt
This document provides definitions and explanations of standard costing and variance analysis. It defines standard costs as predetermined costs based on estimates for materials, labor, and overhead. Standard costing involves establishing standard costs and measuring actual costs against standards to analyze variances and improve efficiency. Variance analysis involves separating total variances into constituent parts and explaining the reasons for variances. The document then discusses different types of variances, including material, labor, and overhead variances. It provides examples of how to calculate various variances using standard and actual data.
Standard costing.ppt
Standard costing is a system that evaluates a company's performance by comparing actual results to predetermined standards or budgets. It involves setting standards for costs and sales margins, collecting actual performance data, calculating variances between standards and actuals, analyzing variances to identify causes, and taking corrective actions. Variances can be calculated for materials, labor, variable overhead, fixed overhead, and sales. Comparing actual results to standards allows management to measure efficiency and make improvements.
Standard costing
Standard costing is a system that evaluates a company's performance by comparing actual results to predetermined standards or budgets. It involves setting standards for costs and sales margins, collecting actual performance data, calculating variances between standards and actuals, analyzing variances to identify causes, and taking corrective actions. Variances can be calculated for materials, labor, overhead and sales to help control costs and motivate staff. Standard costing is useful for planning, valuation, control, and motivation.
Forecast Vs Actual Budget Powerpoint Presentation Slides
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Are you looking to build a presentation on budgetary controls for your business? Then you must use this forecast vs. actual budget PowerPoint presentations slides. Budgets are the monetary plans of any business which allows to streamline their business expenses for a year or so. Use this budgeting and forecasting PowerPoint layout to describe the features of your forecasted business plan budget and then make a comparison of the same with actual expenses. You can use these budget vs actual percentage PPT slides to highlight the comparison such as department wise, product wise or more. It will allow your business analyst to identify the area which requires more attention from the management. You can also make use of this budget presentation to represent the significance of budget, budgetary control measures, budgets objectives, budgetary guidelines and many more as per your requirement. Simply click on our download button. Guide their actions with our PT&s. Ensure that they continue to do good. https://bit.ly/3HUZEUc
Forecast Vs Actual Budget PowerPoint Presentation Slides
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
Finaly Copy Canty
Canty International designed a new wall covering called Decoline to meet the needs of Bryant Inns. Decoline has an innovative techno-fabric covering cemented to a bamboo fiber core, with an estimated 10 year service life. The case analyzes pricing strategies for Decoline, considering costs, market testing, and educating customers on the product's long lifespan to justify its price. It recommends using a cost of ownership pricing method to show customers the product's value over multiple purchases of competitors' products.
Actual Cost Vs Plan Projection Powerpoint Presentation Slides
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Are you facing trouble in creating a professional presentation on the concept of actual cost vs plan projection? Do not worry! SlideTeam has come up with the predesigned actual cost vs plan projection PowerPoint presentation slides. Using this actual vs forecast PPT presentation, you can represent an organization future revenue and expenditure. This planning budgeting and forecasting presentation PPT includes a template on relevant sub-topics such as actual cost vs budget, month wise budget forecasting, overhead cost budget analysis, quarterly budget analysis, master budget vs actual variance analysis, actual vs budget analysis, actual vs target variance, budget vs plan vs forecast, forecast vs actual budget, and forecast and project. It also covers a template on budget vs forecast vs. actual. With the assistance of these financial planning PPT slides, you will be able to achieve an organization economic prosperity. Employ this PPT presentation to compare the past and present report to predict the future performance of an organization. Our PowerPoint designers have used visuals and images of charts and graphs so that you can quickly represent the financial statistics of the business. So, do not wait; download this actual vs. forecast PPT presentation. Achieve the correct ambiance with our Actual Cost Vs Plan Projection Powerpoint Presentation Slides. Create the exact atmosphere you desire. https://bit.ly/3qIdZO5
2. Budget Flessibile
Flexible budgets allow overhead costs to vary based on changes in activity levels. They separate fixed and variable costs. Variable costs change proportionally with activity, while fixed costs remain constant within the relevant range. The document demonstrates how to prepare a flexible budget for CheeseCo based on machine hours. It also shows a budget performance report that calculates variances between the flexible budget and actual results to analyze performance. Most of the $11,650 total variance was due to lower activity levels, while $3,350 was due to poor cost control of variable overhead costs.
ECONOMIC ORDER QTY
This document discusses the economic order quantity (EOQ) model, which aims to minimize total inventory costs by balancing order processing costs and inventory holding costs. It provides the EOQ formula and assumptions, including known constant demand and lead times. An example is shown for a company ordering coffee makers with annual demand of 1000 units. The optimal order quantity is calculated as 80 coffee makers with an expected reorder point of 14 units. Factors that could impact the EOQ are also listed.
Case study 1 greetings inc. job order costing MANAGERIAL ACCOUNTING
The document discusses managerial accounting topics related to job order costing systems, including:
1. Defining a predetermined overhead rate and how it is calculated in a job order costing system.
2. The advantages and disadvantages of using the cost of each print as a manufacturing overhead cost driver.
3. Calculating the predetermined manufacturing overhead rate for a company called Wall Décor based on budgeted overhead costs and expected print costs.
The document also provides examples of calculating product costs for different print products using job order costing and allocating budgeted overhead costs to different product categories based on expected print volumes and costs. Potential issues with solely allocating overhead based on print costs are also discussed.
Similar to Chapter4 Std Costing (20)
Cost accounting: a project on cost analysis & budgeting
Cost accounting: a project on cost analysis & budgeting
Forecast Vs Actual Budget Powerpoint Presentation Slides
Forecast Vs Actual Budget Powerpoint Presentation Slides
Forecast Vs Actual Budget PowerPoint Presentation Slides
Forecast Vs Actual Budget PowerPoint Presentation Slides
Actual Cost Vs Plan Projection Powerpoint Presentation Slides
Actual Cost Vs Plan Projection Powerpoint Presentation Slides
Case study 1 greetings inc. job order costing MANAGERIAL ACCOUNTING
Case study 1 greetings inc. job order costing MANAGERIAL ACCOUNTING
Chapter4 Std Costing
- 1. Standard Costing System Chapter 4 Managerial Accounting Concepts and Empirical Evidence
- 2. Standard Costing Variances Standard Cost Variances Price Quantity Rate Efficiency Spending Efficiency Budget Volume Material Variances Overhead (Indirect Costs) Variances Labor Variances
- 6. Analysis of Differences (Variances) between Actuals and Standards, Ren Corporation Cutting Dept Materials 1) 5,200 (AQ) $ 21 (AP) = $ 109,000 2) 5,200 (AQ) $ 20 (SP) = $ 104,000 Price Variance (1-2) Unfavorable = $ 5,200 Quantity Variance(3-4) Unfavorable = $ 4,80 3) 4,824 (AU) $ 20 (SP) = $ 96,480 4) 4,800 (SQ) $ 20 (SP) = $ 96,000
- 7. Analysis of Differences (Variances) between Actuals and Standards, Ren Corporation Cutting Dept Labor 1) 9,500 (AQ) $ 16 (AP) = $ 152,000 2) 9,500 (AQ) $ 15 (SP) = $ 142,500 Rate Variance (1-2) Unfavorable = $ 9,500 3) 9,600 (SQ) $ 16 (SP) = $144,000 Efficiency Variance(2-3) Favorable = $ (1,500) 2 hrs Req. per desk * 4,800 desk = 9,600 standard req. hrs for the level of production achieved
- 8. Analysis of Differences (Variances) between Actuals and Standards, Ren Corporation Cutting Dept Variable Overhead 1) 9,500 (AQ) $ 1.80 (AP) = $ 17,100 2) 9,500 (AQ) $ 1.50 (SP) = $ 14,250 Spending Variance(1-2) Unfavorable = $ 2,850 3) 9,600 (SQ) $ 1.50 (SP) = $14,400 Efficiency Variance(2-3) Favorable = $ (150)
- 9. Analysis of Differences (Variances) between Actuals and Standards, Ren Corporation Cutting Dept Fixed Overhead 1) Actual fixed overhead = $ 4,900 2) Budgeted Fixed overhead = $ 5,000 Budget Variance (1-2) Favorable = $ (100) 3) Standard Fixed overhead = $4,800 for the level of production achieved ($ 0.50 * 9,600) Volume Variance(2-3) unfavorable = $ 200