COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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800 Favorable
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1, 250 Unfavorable
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800 Unfavorable
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1, 250 Favorable
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Detailed explanation-1: -Standard Costing is an integral part of the costing process within an organisation. It is a process that helps compare the revenues and actual cost of producing a good or service with the actual results to measure the variance and understand its reasons.
Detailed explanation-2: -Under the Standard Costing System, which of the following actions is true about the cost variance? Explanation: The real cost of material cost, direct labor, and administration to produce a unit of product is known as actual cost. Variance is the difference between the actual and standard costs.
Detailed explanation-3: -Fact Pattern: ChemKing uses a standard costing system in the manufacture of its single product.
Detailed explanation-4: -Standard costing is technique which is more useful in manufacturing industries. Bricks, cement, fertilizers, sugar etc are the type of industries in which standard costing is more useful.