Post 1 - production process. Standard costing is often used...

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Q2. Why does standard costing make process costing more clerically and computationally efficient? Hi Professor and class, Standard costing is a system under which the cost of a product is determined in advance on certain pre-determined standards. Process costing is generally used for the continuous production of identical products. As the name implies, it is used when there is an ongoing process of multiple items coming down the line. Materials and labor are added continuously to the
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Unformatted text preview: production process. Standard costing is often used in conjunction with process costing because of the consistency. Standard costs are determined on an annual basis and use the material and labor requirements from the bill of material along with the standard cost per unit of material or hour of labor to determine a standard unit cost. A standard overhead cost is also calculated annually and included in the product cost. Jack...
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This note was uploaded on 07/16/2011 for the course COST ACCOU 410 taught by Professor David during the Fall '10 term at Kaplan University.

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