Standard Costing
Characteristics
Why?
Standards
Variances
Activity
Spending
Overview
Spending variances
Price
Quantity
Fixed OH variances
Budget
Volume
Reconciling variances
Favourable
Unfavourable
Journals
Material
Labour
Overhead
Variable
Fixed
Who is responsible?
Advantages
Manage by exception
Std's = benchmarks
Simplify accounting
Responsibility accounting
Problems
Outdated Std's
Labour = varialbe?
Favourable = bad?
Dysfunctional decisions
Meet std's = sufficient?