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
>
-
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
>
-
