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Standard cost accounting an important part of cost accounting and it includes all the cost associated with direct material, manufacturing overhead and direct labour in a manufacturing company. Writing assignment on standard cost accounting might get difficult and as such student may require professional help. Looking for standard cost accounting assignment help, then you are the right place. We can confidently say that we offer best online service simply because of our team of experts who are professional and very good at their job.
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Standard cost accounting
Standard costs are the predetermined cost which can be used as a tool to measure the efficiency with which actual costs has been incurred under given circumstance. For example, the quantity of raw material required to produce a unit of product can be determined and the cost of that raw material is estimated. This then becomes the standard material input. If the actual raw material usage differ from the standards, the difference called ‘variance’ is reported to the manager concerned in an organization When difference of the variance is more, a detailed investigation is done to find out the cause of variance and action is taken accordingly by the management to save company from any loss.
There can be two types of situation in standard cost accounting:
• First when the actual cost is less than the estimated cost. This is a favorable situation for the company as it will earn more than the planned profit.
• Other is when the actual cost is higher than the estimated cost. In this case management has to check the reason for the variance and take necessary action to mitigate the problem.
The standard cost of the product is the total of all the components of cost like material, labour and overhead. These costs should be analyzed periodically to find the variances in the cost.
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