During the evolutionary stage of costing, the focus was only on the determination of actual cost
Introduction
During the evolutionary stage of
costing, the focus was only on the determination of actual cost i.e. The main
activity of the cost accountants was determining the actual cost of production.
This resulted in the non-availability of cost control measures to the
management. Standard costing was developed by cost accountants to meet these
contingencies.
Learning Objectives
After reading this lesson the
reader should be able to;
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Know the meaning of standard costing
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Understand the advantages of standard costing
system
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Understand the different kinds of
variances with special reference to material variance and labour variance
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Understand the reasons for these variances
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Realize the importance of variance analysis
Tags : Accounting For Managers - Cost Estimation And Control-Standard Costing And Variance Analysis
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