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

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