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Standard Costing Summary $5.62   Add to cart
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  3. University Of Cape Town (UCT)
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  5. Management Accounting (ACC2022H)

Summary

Standard Costing Summary
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  • Course
  • Management Accounting (ACC2022H)
  • Institution
  • University Of Cape Town (UCT)

Definition of standard costing: Explaining what standard costs are and their role in budgeting and cost control. Types of standards: Overview of ideal vs. attainable standards. Setting standards: How to establish direct material, direct labor, and overhead standards. Variance analysis: Explainin...

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Document information

  • September 15, 2024
  • 7
  • 2024/2025
  • Summary

Subjects

  • standard costing

Written for

  • University of Cape Town (UCT)
  • Management Accounting (ACC2022H)
All documents for this subject (3)

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Standard Costing and Flexible Budgets
Predetermined costs incurred under efficient
operating conditions
presented on a
per unit basis
.



Controls actions which
managements objectives and
are ensure
plans
a re alhieved
.




3
predetermined standard performance level
or
>
-




of actual
>
-
A measure
performance Parts of control
systems
and
>
-



Comparison between standard actual
performance
Presents into
>
-
on a unit basis
per
.




·
Standard Costing is
part
of a
budgetary control
system that
works like a thermostat




Decision
Making processes

Identify objectives
Search for the alternative courses of action

Gather data about the alternatives

Select course of action


Implement decision



What ?
happens then

, ·Compareactuaandplannedoutcomes 3
Cour Presa




Important
Cost
cost classifications
·
behaviour

>
-
fixed
>
- Variable

Step
>
-




Manufacturing Non-manufacturing
Controllability .




A standard level of used
is a
quality or attainment to
accept as


normal or
everage
.




Purposes of Standard Costing

Provides of future
prediction that be used to make decisions
·
a costs can


Provides challenging target
a in
responsibility
a centre

of
Motivation .




Assists in
setting budgets and evaluating
performance managers
.




·
Acts as a control device
·

Simplifying the task of freeing costs for profit measurement and Inventory.

Manufacturing Standards

of standards manufacturing entity
Examples in a :


>
-
Direct Materials :


unit of DM
price per
>
-




Amount of materials to be used in
production
>
-




Number of units
produced
>
-

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