Đang chuẩn bị nút TẢI XUỐNG, xin hãy chờ
Tải xuống
Chapter 23 – Standard cost systems. Upon completion of this lesson, the successful participant will be able to: Explain how standard costs assist managers in controlling costs, explain the difference between setting ideal standards and setting reasonably achievable standards, compute variable cost variances and explain the meaning of each,. | Standard Cost Systems Chapter 23 2 Benchmarks for measuring performance. The expected level of performance. Based on carefully predetermined amounts. Used for planning labor, material and overhead requirements. Standard Costs are Standard Cost Systems Direct Material Type of Product Cost Amount Direct Labor Manufacturing Overhead Standard cost A standard cost variance is the amount by which an actual cost differs from the standard cost. Standard Cost Systems Type of Product Cost Amount This variance is unfavorable because the actual cost exceeds the standard cost. This variance is favorable because the actual cost is less than the standard cost. Standard cost Standard Cost Systems Direct Labor Manufacturing Overhead Direct Material Prepare standard cost performance report Conduct next period’s operations Analyze variances Identify questions Receive explanations Take corrective actions Begin Variance Analysis Should we use normal standards or ideal standards? Engineer Managerial Accountant Establishing and Revising Standard Costs Normal standards should be set at levels that are currently attainable with reasonable and efficient effort. Production manager I agree. Ideal standards, that are based on perfection, are unattainable and therefore discouraging to most employees. Human Resources Manager Establishing and Revising Standard Costs Are standards the same as budgets? A standard is the expected cost for one unit. A budget is the expected cost for all units. Use of Standard Costs in Developing Budgets Use product design specifications. Use competitive bids for the quality and quantity desired. Quantity Standards Direct Material Standards Price Standards The standard material cost for one unit of product is: standard quantity standard price for of material one unit of material required for one unit of product × Direct Material Standards Time Standards Rate Standards Direct Labor Standards Use time and motion studies for each labor operation. Use wage . | Standard Cost Systems Chapter 23 2 Benchmarks for measuring performance. The expected level of performance. Based on carefully predetermined amounts. Used for planning labor, material and overhead requirements. Standard Costs are Standard Cost Systems Direct Material Type of Product Cost Amount Direct Labor Manufacturing Overhead Standard cost A standard cost variance is the amount by which an actual cost differs from the standard cost. Standard Cost Systems Type of Product Cost Amount This variance is unfavorable because the actual cost exceeds the standard cost. This variance is favorable because the actual cost is less than the standard cost. Standard cost Standard Cost Systems Direct Labor Manufacturing Overhead Direct Material Prepare standard cost performance report Conduct next period’s operations Analyze variances Identify questions Receive explanations Take corrective actions Begin Variance Analysis Should we use normal standards or ideal standards? Engineer .
