ADMN 3021H Lecture Notes - Lecture 9: Standard Cost Accounting, Balanced Scorecard, Cost Accounting

• School: Trent University
• Department: Business Administration
• Course: ADMN 3021H
• Professor: Jaime Morales

Document Summary

Learning objectives: describe standard costs, determine direct materials variances, determine direct labour and total manufacturing overhead variances, prepare variance reports and balanced scorecards. Identify the features of a standard cost accounting system (appendix 12a) Standards: are common in business, are often imposed by government agencies (and called regulations) Standard costs: are predetermined unit costs, used as measures of performance. Distinguishing between standards and budgets standards and budgets are both: pre-determined costs, part of management planning and control a standard is a unit amount whereas a budget is a total amount. Budget data are not journalized in cost accounting systems standard costs may be incorporated into a cost accounting system. Promote greater economy by making employees more "cost-conscious" Help highlight variances in management by exception simplify costing of inventories and reduce clerical costs contribute to management control by providing basis for evaluation of cost control. Direct materials price standard is the cost per unit of direct materials that should be incurred.