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.
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standard costing and variance analysis
Compare Standard costing vs variance analysis?"
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The two basic types of costing systems are job order costing and process costing. Job order costing is used when products are made based on specific customer orders, allowing for tracking costs for each individual job. In contrast, process costing is applied in industries where production is continuous and units are indistinguishable, allocating costs to processes or departments over a specific period. Each system serves different manufacturing environments and provides insights into cost control and pricing strategies.
What ARE the disadvantages of standard costing?
to undersrand
features of standard costing
http://www.futureaccountant.com/standard-costing-variance-analysis/ http://www.futureaccountant.com/standard-costing-variance-analysis/
standard costing and variance analysis
Compare Standard costing vs variance analysis?"
Standard costing is process of determining the standard price require to produce one unit of product while actual costing system uses the actual prices of manufacturing one unit of product.
Job Order Costing Operation Costing Normal Costing Actual Costing Standard Costing Kaizen Costing Target Cost
Standard costing will be the price for something. Mostly in every store. The target costing is when one says what one is willing to pay and they can negotiate the cost.
Standard costing is a set target where it is used as a goal to monitor progress
angiyazi
Imposing standard costs without communicating in an honest, candid manner will undermine much of the perceived value of such costing.