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Standard Costing Vs Variance Analysis?
standard costing and variance analysis
How is standard costing variance interrelated?
http://www.futureaccountant.com/standard-costing-variance-analysis/ http://www.futureaccountant.com/standard-costing-variance-analysis/
Limitations of standard costing?
Limitations of Standard Costing # It cannot be used in those organizations where non-standard products are produced. If the production is undertaken according to the customer specifications, then each job will involve different amount of expenditures. # The process of setting standard is a difficult task, as it requires technical skills. The time and motion study is required to be undertaken for this purpose. These studies require a lot of time and money. # There are no inset circumstances to be considered for fixing standards. The conditions under which standards are fixed do not remain static. With the change in circumstances, if the standards are not revised the same become impracticable. # The fixing of responsibility is not an easy task. The variances are to be classified into controllable and uncontrollable variances. Standard costing is applicable only for controllable variances. For instance, if the industry changed the technology then the system will not be suitable. In that case, we will have to change or revise the standards. A frequent revision of standards will become costly.
What are examples of ratios used in life?
Comparing prices of goods. Which is cheaper: ten dollars for a ten kilograms or 7.5 dollars for 7 kilograms? The way to answer it is to compare unit prices and these are examples of ratios. A more complicated situation arises if there is another product costing 8 dollars for 15 pounds (mass, not currency).
How many change each costing 25p can be bought for GBP 2.50?
Ten of them.
