Ch 10

Managerial Accounting: Creating Value in a Dynamic Business Environment

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Ch 10 Chapter Overview ( I. Managing Costs  A. System components (3 components) Predetermined or standard performance level Actual performance measure Comparison between actual and standard and investigation of variances B. Management by exception: the process of investigating significant variances II. Setting Standards  A. Analysis of historical data B. Task analysis C. Participation in setting standards D. Perfection versus practical standards E. Applications in non-manufacturing organizations III. Variance Analysis A. Direct-material and direct-labor standards B. Variance model C. Direct-material and direct-labor variances IV.       Variance Investigation V. Behavioral Impact of Standard Costing  a. Perfection vs. Practical standards i. Perfection standards: attainable under only nearly perfect  conditions ii. Practical standards: attainable under normal operating conditions 
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Unformatted text preview: and allow for occasional machine breakdowns and normal amounts of raw material waste VI. Controllability of Variances A. Variance interaction and trade-offs VII. Standard Costs and Product Costing a. Standard cost: a budget for the production of one unit of product or service b. Direct Material Price and Quantity variances c. Direct labor rate and efficiency variances VIII. Advantages of Standard Costs IX. Criticisms of Standard-Costing Systems in Today's Manufacturing Environment X. Operational Control Measures XI. Balanced Scorecard A. Financial and non-financial performance measures B. Lead and lag measures XII. Appendix: Journal Entries in a Standard-Costing System...
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Ch 10 - and allow for occasional machine breakdowns and...

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