Tag Archives | Standard Costing

Standard Costing: Meaning and Objectives | Cost Accounting

In this article we will discuss about:- 1. Meaning of Standard Costing 2. Objectives of Standard Costing 3. Types of Standards 4. Setting Standards 5. Standard Costing System during Inflation 6. Standard Costing and Activity Based Costing 7. Standard Cost Card 8. Responsibility for Setting Standards 9. Problems in Setting Standard Costs 10. Advantages of […]

Difference between Standard Cost and Historical Cost

Learn about the difference between difference between Standard Cost and Historical Cost. The meaning of ‘Standard Cost’ will be more illuminating to us if a line of distinction is drawn between ‘Standard Cost’ and ‘Historical Cost’. The following are the points of distinction: (i) Recording: Standard Cost is determined and recorded before actual performance while […]

Standard Cost and Estimated Cost | Cost Accountancy

Learn about the comparison between Standard Cost and Estimated Costs. (i) Objective: Estimated costs are intended to ascertain what the costs will be while standard costs aim at what costs should be. (ii) Calculation: Estimated costs are calculated on the basis of past performance being adjusted in the light of anticipated changes in the future. […]

4 Major Types of Variance Analysis | Cost Accountancy

The following points highlight the four major types of variance analysis. The types are: 1. Material Variances 2. Labour Variances 3. Variable Overhead Variances 4. Sales Variances. Variance Analysis: Type # 1. Material Variances: Some Definitions: 1. Direct Materials Usage Variance: “The difference between the standard quantity specified for actual production and the actual quantity […]

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