ACCT208 Lecture Notes - Lecture 10: Deutsche Luft Hansa, Cost Driver, Indian Railways
1 Apr 2016
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Lecture outline for chapter 10 and appendix a: standard costs and variances. Chapter 10 is a continuation of responsibility accounting: we will be looking at feedback: controlling operations and evaluating performance. Let"s review it in terms of discussing variances : net operating activity variance. Revenue and spending variances: let"s concentrate on the spending variances: What is a standard anyway: benchmark used to measure performance. How much should the inputs for making our product or performing a service cost? . Actual 122,500: use management by exception. We only check those variances that are large and fix as needed: stds are communicated to employees by use of a std. cost card: Shows qty + cost of (dm, dl, voh) inputs to. Price: standard price per unit of material. Final delivered cost of materials, net of discount: standard quantity per unit of product. Amount of material required for each unit of finished product plus.
