standard costing - PowerPoint PPT Presentation

Loading...

PPT – standard costing PowerPoint presentation | free to download - id: 87e53f-Njg0Y



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

standard costing

Description:

standard costing – PowerPoint PPT presentation

Number of Views:7
Slides: 11
Provided by: raman_123

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: standard costing


1
STANDARD COSTING
  • A costing presentation on

2
What is standard costing ?
  • It is the setting up of standards for the
    purpose of cost control which is done while
    carrying out the production process by keeping
    in view these standards
  • It helps us to analyse the reason for the non
    achievement of standards along with the say
    about whether it was in the hands of the
    management to be controlled

3
What is a standard ?
  • In context of costing, a standard is a
    predetermined cost which is calculated or zeroed
    upon after doing a relevant amount of technical
    analysis
  • They are different from budgets which are set on
    past performances after adjusting them with the
    future trend

4
Types of standard
  • Ideal Standard -These standards are set on the
    assumption that the everyday factor will be most
    favourable to the organization
  • Normal Standard -These standards are set on the
    assumption that operating conditions will be
    normal

5
Types of standard
  • Basic or Bogey Standard - These standards are
    used only when it is likely that standards will
    be constant or unaltered over a long period
  • Current Standard - These standards are set up as
    per latest developments and current market
    senarios

6
What is a variance ?
  • A variance is the difference between the earlier
    set standard with the present production figures
    defined in a quantitative way
  • The term variance comes from the term varied
    which is an expression to define the measure of
    non achievement of standards.

7
Types of variance
  • Material cost variance
  • Labour cost variance
  • Variable overhead variance
  • Sales margin variance
  • Sales turnover variance
  • Fixed overhead variance

8
Material Cost variance
  • Is of two types-
  • Material cost variance
  • Material usage variance
  • Material usage variance is of two types-
  • Material mix variance
  • Material yield variance

9
Material cost variance
10
Thank You
About PowerShow.com