Question

What is the purpose of using standard costs?

What is the purpose of using standard costs?

Homework Answers

Answer #1

Solution:

Standard costing is the ascertainment of standard cost and it’s comparison with the actual cost inorder to ascertain variations if any.otherwise it’s called a predetermined cost after taking all the factors into consideration.

Purpose of Standard costs:

1)If any variation arises ,Standard costing helps in making appropriate decisions.

2)We can use management by exceptions easily with standard costing.

3)Standard costing measures after a deep study,this study helps in innovation of new ways to increase our performance

4)Standard costing helps in making effective production policies

5)Better control and supervision is possible through Standard costs.

6)It is easy to build planning budget in Standard costing

7) Every employee is alert with the Standard cost.Because they know that they will not bring performance,company may demote him.It will automatically increase their efficiency.

8)Stock evaluation is easy through Standard costing

9)Here the target or Standard is already set, there by delegate authority and responsibility towards the concerned people’s.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the purpose of using standard costs? I want answer in seven to eight sentences
What is the purpose of using standard costs? I want answer in seven to eight sentences
What is One Advantage of Standard Costs and One Potential Problem with using Standard Costs? Do...
What is One Advantage of Standard Costs and One Potential Problem with using Standard Costs? Do you feel the benefits outweigh the problems with using Standard Costs as a Manager?
3- What is the purpose of a strike? What are the costs to workers and to...
3- What is the purpose of a strike? What are the costs to workers and to management? 4- Explain how the optimal quantity of air pollution is determined.
1. What is the purpose of a​ strike? What are the costs to workers and to​...
1. What is the purpose of a​ strike? What are the costs to workers and to​ management? 2. Explain how the optimal quantity of air pollution is determined.
what is the purpose of using concomitants with treatment drugs?
what is the purpose of using concomitants with treatment drugs?
What is the purpose of using a standardized measure, such as the laterality quotient?
What is the purpose of using a standardized measure, such as the laterality quotient?
What is the purpose of using constants over literal in code?
What is the purpose of using constants over literal in code?
What is the purpose of using the different techniques to scan the female pelvis?
What is the purpose of using the different techniques to scan the female pelvis?
what is the purpose of liquidity stress testing? What is its role and useful for? (using...
what is the purpose of liquidity stress testing? What is its role and useful for? (using own words, thanks)
What is TISAB and what is the purpose of it?Why is “dilution solution” used to make...
What is TISAB and what is the purpose of it?Why is “dilution solution” used to make standard solutions? What is the problem with using water to make dilution?