ACCT 2230 Chapter Notes - Chapter 10: Management Accounting, Cost Accounting, Variable Cost
11 Apr 2016
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Chapter 10 standard costs and overhead analysis. Standards are widely used in managerial accouning where they relate to quanity and cost of inputs used in manufacturing goods or providing services. Management by excepion a system of management in which standards are set for various operaing aciviies that are then periodically compared to actual results. Any diferences that are deemed signiicant are brought to the atenion of management as excepions . Ulimate goal is to improve operaions not assign blame. Standards should be designed to encourage eicient future operaions, not a repeiion of past operaions. Manufacturing companies oten have highly developed standard cosing systems. Standard cost record a detailed lising of the standard amounts of materials, labour, and overhead that should go into a unit of product, muliplied by the standard price or rate that has been set for each cost element. Standards tend to fall in one of two categories: ideal standards atained only at he best circumstances.
