RSM222H1 Chapter Notes - Chapter 10: Standard Cost Accounting, Cost Accounting, Industrial Engineering
Document Summary
Continues the study of planning, control, and performance measurement. Standard costs: represents specific elements such as dm or dl requirements as well as oh projections. Mbe: a system of mgmt. in which standards are set for various operating activities that are then periodically compared to actual results; any differences that are deemed significant re brought to the attention of mgmt. as exceptions . Quantity standards: specify how much of an input should be used to make a unit of product or to provide a unit of service. Cost (price) standards: specify how much should be paid for each unit of input: this approach is used in the variance and analysis cycle; begins w preparation of standard cost performance reports in the acc department. Signi variances are investigated (diff btwn actual results and what should have occurred according to standards) Cycle begin again w new standard cost performance for the most. Goal is to improve operations not put blame recent period.
