COMM 305 Chapter Notes - Chapter 12: Standard Cost Accounting, Direct Labor Cost, Herbicide
7 Apr 2017
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Standards imposed by government agencies are called regulations. In canada, many regulations fall under provincial jurisdiction. Standards that are established internally by a company may include standards for personnel matters such as employee absenteeism and ethical codes of conduct quality control standards for products, and standard costs for goods & services. In managerial accounting, standards costs are predetermined units costs that are used as measures of performance. Standard costs can also be used in not-for-profit enterprises, like universities, charitable organizations and government agencies. In theory, standards and budgets are essentially the same. Both are predetermined costs and both contribute to management planning and control. But there"s a difference in the way the terms are expressed. For example, the standard cost of direct labor for a unit of product is . If 5,000 units of the products are produced, the ,000 of direct labor is the budgeted labor cost. A standard is the budgeted cost per unit of product.
