100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Standard Costing Summary R99,33
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Cape Town (UCT)
  4.  
  5. Management Accounting (ACC2022H)

Summary

Standard Costing Summary
 4 views  0 purchase

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...

[Show more]

Preview 2 out of 7  pages

Document information

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

Subjects

Written for

All documents for this subject (3)

Seller

avatar-seller
kevinlondeka

Content preview

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
>
-

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller kevinlondeka. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R99,33. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52355 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R99,33
  • (0)
Add to cart
Added