The Need for Standards

The Need for Standards - The Need for Standards

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The Need for Standards Standards are common in business.   Those imposed by government agencies are often called  regulations . They include the Fair Labor Standards Act, the Equal Employment Opportunity Act,  and a multitude of environmental standards. Standards established internally by a company may  extend to personnel matters, such as employee absenteeism and ethical codes of conduct, quality  control standards for products, and standard costs for goods and services.  In managerial accounting,  standard costs  are predetermined unit costs, which companies use as measures of performance. We will focus on manufacturing operations in this chapter. But you should also recognize that  standard costs also apply to many types of service businesses as well. For example, a fast-food  restaurant such as  McDonald's  knows the price it should pay for pickles, beef, buns, and other 
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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The Need for Standards - The Need for Standards

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