STANDARD COSTING

This book is brought up in accordance with the subject of Standard costing. In this book, the subject matter is expressed in clear way so that each and every reader understand the subject easily. In the book, I clearly mentioned the Definition, Features, Objectives, Advantages, Disadvantages of Standard costing, several variances explained with suitable examples. Hence, this book will help the readers to understand Standard costing. I believe that with the help of this book, every reader gets the scope of knowledge which helps them in getting the understanding of Standard costing in Cost Accounting. I wish that this book will win the heart of every user. 

The main features of the book are simple understanding and key concepts.

This book is useful to everyone in Cost accounting field like students, Accounts executives, Analysts etc… .
It is hoped that this will facilitate a better understanding of the subject matter.

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

All the best …


CONTENTS

 
DEFINITION
CHARACTERIATICS OF STANDARD COST
CHARACTERISTICS OF STANDARD COSTING
OBJECTIVES OF STANDARD COSTING
ADVANTAGES OF STANDARD COSTING
DIAADVANTAGES OF STANDARD COSTING
SETTING OF STANDARDS
ASPECTS OF STANDARDS
 Aspects of standards
  1. Type of standard
   a. Ideal standard
   b. Basic standard
   c. Normal standard
   d. Expected standard
   e. Historical standard
  2. Length of the period
  3.level of attainment
SETTING OF STANDARD COST
  1. Direct material cost standard
  2. Direct labour / wages
  3. Direct expense standards
  4. Overhead standards
COMPUTATION OF VARIANCES
 A. Material variance
  Material cost variance
   1. Price variance
   2. Quantity variance
    a. Mix variance
    b. Yield variance
B. Labour variance
 Cost variance
  1. Rate / Price variance
  2. Efficiency variance
   a. Mix variance
   b. Yield variance
  3. Idle time variance
 C. Fixed overhead variance
  Cost variance
   1. Expenditure variance
   2. Quantity / Volume variance
    a. Efficiency variance
    b. Capacity variance
      i. Revised capacity variance
      ii. Calendar variance
 D. Variable overhead variance
  1. Cost variance
  2. Expenditure variance
  3. efficiency variance
PROBLEMS AND SOLUTIONS
  Problem 1 and Solution
  Problem 2 and Solution
  Problem 3 and Solution
  Problem 4 and Solution
  Problem 5 and Solution
  Problem 6 and Solution