Accounting For Managers - Cost Estimation And Control-Standard Costing And Variance Analysis
Summary-Standard Costing And Variance Analysis
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Cost control is a concrete step towards profit maximization and standard costing with the aid of variance analysis ensures this.
Summary
Cost control is a concrete step towards profit maximization and standard costing with the aid of variance analysis ensures this. Cost control is achieved by adopting the following steps: pre – determination of standard costs, consumption of actual costs, comparison of actual costs with standard costs and recording of the variances if any and analyzing and reporting on these variances to the management so that suitable action may be taken whenever necessary in order to control the costs in future.
Cost control is a concrete step towards profit maximization and standard costing with the aid of variance analysis ensures this. Cost control is achieved by adopting the following steps: pre – determination of standard costs, consumption of actual costs, comparison of actual costs with standard costs and recording of the variances if any and analyzing and reporting on these variances to the management so that suitable action may be taken whenever necessary in order to control the costs in future.
Tags : Accounting For Managers - Cost Estimation And Control-Standard Costing And Variance Analysis
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