Tag Archives: Standard Costing

Both standard costing and budgetary control achieve the same objective of maximum efficiency and cost reduction by establishing a predetermined standard, comparing actual performance with the predetermined standard and taking corrective measures, where necessary. Thus, although both are useful tools for the management in controlling cost, they differ in the …

Standard cost is a predetermined cost. It is a determination in advance of production, of what should be that cost. When standard costs are used for the purpose of cost –control, the technique is known as the standard costing. The costing terminology of chartered Institute of Management Accountants, London defines …