Description
define a standard cost and explain what constitutes the components of a standard cost. Describe the advantages and disadvantages of a standard cost system and explain under what circumstances a standard cost system is most effective.
Explanation & Answer
define a standard cost
An estimated or predetermined cost of performing an operation or producing a good or service, under normal conditions
explain what constitutes the components of a standard cost.
estimates of standard quantities of inputs, and budgeted prices of those inputs
Describe the advantages -------provides a yardstick for performance evaluation.
minimizes the wastage by detecting variance and suggesting for corrective actions
encourages reappraisals of methods, materials and techniques that help to reduce the unfavorable variances
and disadvantages of a standard cost system
lack of flexibility
skews profitability
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
Uncle Tom's Cabin
by Harriet Beecher Stowe
Shattered - Inside Hillary Clintons Doomed Campaign
by Amie Parnes and Jonathan Allen
Treasure Island
by Robert Louis
The Good Earth
by Pearl S. Buck
The 5 Love Languages
by Gary Chapman
Into Thin Air
by Jon Krakauer
The Turn of the Screw
by Henry James
The Awakening
by Kate Chopin
The English Patient
by Michael Ondaatje