ابدأ بالتواصل مع الأشخاص وتبادل معارفك المهنية

أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.

متابعة

What is the standard costing system?

user-image
تم إضافة السؤال من قبل Mohammed El Tahir Mohammed Yousif , Finance Manager , Factory of Golden Block Company for Cement Products
تاريخ النشر: 2018/04/07
Zia Rizvi
من قبل Zia Rizvi , Finance Manager (CFO) , Saudi Arabian Fabricated Metals Industry Company Ltd.

It is a system to define the standard qty and standard rate for each pre-defined activity or process and report the standard cost of each activity .

Standard costing system helps in doing the meaningful variance analysis on completion of each activity with the actual cost .

Wasim Akaram
من قبل Wasim Akaram , site engineer , suhana realstructure pvt ltd

In accounting, a standard costing system is a tool for planning budgets, managing and controlling costs, and evaluating cost management performance.

Azim Farooq
من قبل Azim Farooq , Assistant Manager plant Operation , Tufail Chemical Industries

A standard costing system is a tool for planning budgets, managing and controlling costs, and evaluating cost management performance.

A standard costing system involves estimating the required actual costs of a production process.

Standard costs are often a part of a manufacturer's annual profit plan and operating budgets.

The difference between the standard costs and the actual manufacturing costs is referred to as a cost variance  and will be recorded in separate variance accounts

Ashraf E. Mahmoud (PhD)
من قبل Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

Standard costing system:

Is used in planning operations and gaining insights into the probable impact of managerial decisions on cost levels and profits. Standard costs are used for:

 

  1. Establishing budgets.

  2. Controlling costs and motivation and measuring efficiencies.

  3. Promoting possible cost reduction.

  4. Simplifying costing procedures and expediting cost reports.

  5. Assigning costs to materials, work in process, and finished goods inventories.

  6. Forming the basis for establishing bids and contracts and for setting sales prices.

Mohammed El Tahir Mohammed Yousif
من قبل Mohammed El Tahir Mohammed Yousif , Finance Manager , Factory of Golden Block Company for Cement Products

In accounting, a standard costing system is a tool for planning budgets, managing and controlling costs, and evaluating cost management performance. A standard costing system involves estimating the required costs of a production 

المزيد من الأسئلة المماثلة