COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Manage the Standard Cost task.
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Create Standard Cost in spreadsheet.
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Import standard costs from receipt layers.
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Manage the Item Cost task.
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Detailed explanation-1: -Standard costing is a technique where the firm compares the costs that were incurred for the production of the goods and the costs that should have been incurred for the same. Essentially it is the comparison between actual costs and standard costs. The differences between the two are variances.
Detailed explanation-2: -A cost accounting system helps determine how much the production of a good or service will cost. There are two types of systems: job order costing and process costing.
Detailed explanation-3: -What is Standard Costing? Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Subsequently, variances are recorded to show the difference between the expected and actual costs.