Standard Costing – Dani Ki Costing – CA IPCC Video Lectures


Standard Costing – Dani Ki Costing – CA IPCC Video Lectures

Standard Costing – Dani Ki Costing – CA IPCC Video Lectures | Standard Costing – Dani Ki Costing – CA IPCC Video Lectures | Standard Costing – Dani Ki Costing – CA IPCC Video Lectures | Standard Costing – Dani Ki Costing – CA IPCC Video Lectures

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Dani Ki Costing
IPCC Video Lectures
Standard Costing
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Standard Costing

An organization sets some standard for cost and quantity of different resources acquired in the manufacturing process. It is generally self derived or benchmark of the industry. Standard Costing in simple words is the technique of costing to find the weakness of the organization by comparing the standard cost and the actual cost incurred for any activity. Such difference is known as variance.  It can be either positive or negative.
Standard costs are determined by dividing them into three main parts viz. Direct Material Cost, Direct Labor Cost and Overheads. Standard costing technique is very effective but it is very difficult to define standards. For example if the standards are established for material specification and it may happen that material of such specification is not available then the standards could not be achieved.
Proper care is to be taken while setting up standards so that accuracy and relevance can be achieved. Different kinds of standards are used such as ideal standards, normal standards, basic or bogey standard, current standard etc. Standard costing is of much importance as it is helpful to predict future cost that will help in making decision. It also helps in setting target that acts as organizational goal that is to be achieved.

Standard costing is a technique used in budgeting and evaluation of performance. It is of great significance in interim profit measurement and valuation of inventory. Standard costing is not a one time event, it is a procedure. The process starts with setting of standards and is completed on disposition of variance. It helps in finding out different controllable and uncontrollable variances. 


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  1. All parts are now private please provide public access

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