Definition and explanation of standards and standard costing in accounting. The use of standards by international companies.
Standard Costing and Variance Analysis
Explanation of direct materials standards. Setting direct materials price and quantity standards.
Explanation, computation and reasons of direct materials price variance.
Explanation and computation of direct materials quantity variance. Reasons of unfavorable materials quantity variance.
Explanation of direct labor rate and time standards. Procedure of establishing these standards.
Computation of direct labor rate variance. Explanation of the reasons of an unfavorable direct labor rate variance.
The difference between actual time incurred to manufacture a certain number of units and the time allowed by standards to manufacture that number of units ……
Difference between standards and budgets
Variable manufacturing overhead standards are set using direct labor hours or machine hours. If the business is highly labor intensive, the direct labor ……
The purpose and structure of a variance performance report.