Ch 11 Standard Costs

Ch 11 Standard Costs - Ch 11 Standard Costs + Balanced...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Wednesday, February 09, 2011 10:29 AM Ch 1 Actual Costing System Actual DM Actual DL Actual OHD Ch 2…4 Normal Costing System Actual DM Actual DL Applied OHD Ch 11 Standard Costing System Standard DM Standard DL Standard OHD Standard Costs = production and operating costs carefully set in advance to measure what these costs should be under certain conditions How are standards set? -perfection vs. - best to be somewhere in the middle (Currently Attainable - difficult to reach, yet possible to achieve ) -very loose Can use standard costing to assess performance, to help build budgets, to save book-keeping costs For an evaluative production report- Compare actual results with budgeted results at the actual activity level Two sources of differences o Price variances [mtls] (rate [labor], spending[OHD]) - differences in input prices o Quantity (usage, efficiency) variances - how efficiently resources were used Two Directions of Differences o If actual is greater than Standard (unit) or Budgeted (total) = Unfavorable variance [U] Debit balance o
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/27/2012 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.

Page1 / 5

Ch 11 Standard Costs - Ch 11 Standard Costs + Balanced...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online