Standard costing

standard costing - Related Articles
Standard Procedure: IFRS Harmonization
Viewpoints ...

Standard Costing
Standard costing is a widely used and practical solution to costing, pricing and process control enabling useful variance analysis and feedback to hone in on areas that need action or investigation ...

Standard costing system: A costing system that tracks product costs using standard costs during the period, and makes appropriate adjustments for the differences between actual costs and standard costs at the end of the period.

Standard Costing
Advantages of Standard Costing
Standards: A Unit Concept
The Text Example
Predetermined Overhead Rate
Actual Costs
Price and Usage Variances
Materials Variances: Price and Quantity
Labor Variances: Price and Quantity ...

In standard costing, the quantity variance could be the direct materials' usage variance or the direct labor's efficiency variance.

The FSU standard costing sheet used a system of standard mark-up percentages for each supplier in the chain. This is exactly the same as full-cost costing and is widely used in industries where contracts are individually costed for a client e.g.

the price that serves as a standard for the valuation of certain inventory accounts (i.e., raw materials, work in progress, and finished goods) in standard costing. OR 2. the price that must be charged under a contract regardless of production costs.

The standard costing system is designed to facilitate: (1) planning and controlling costs; (2) judgment of performance; (3) budget preparation; (4) inventory valuation; and (5) employee motivation.

standard costing A management tool used to estimate the overall cost of production, assuming normal operations. standard deduction A fixed deduction allowed to taxpayers who do not itemize.

See also: Costing system, Expense, Variable cost, Direct labor, Manufacturing overhead