Standard Cost Accounting Homework Help
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Introduced in the early 1920’s Standard cost accounting is a traditional form of accounting. It was found to suppress the limitations of accounting method based on historical costs. Ratios also known as efficiencies are used in order to compare the labour and material used to produce an item or goods. This method is also harmful to workers and managers in several ways. Anyway, in this Standard cost accounting homework help article we need to focus over the various important facts about standard cost accounting.
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Advantages of Standard Costing
The following point wise description in our Standard cost accounting homework help article gives an insight about how standard costing achieves the positive aspects of a business.
1. It helps in budgeting as budgets are prepared by the help of standard costs.
2. It also helps in inventory costing. The period end inventory balances are multiplied with the standard costs
3. Overheads related to manufacturing can be sufficed by using standard costing accounting. Even if the actual costs are continuously changing, the standard costs are updated frequently.
4. The compiled cost of a customer’s requirement is necessary and is achieved by price formulation. The database of product component is used by the sales department and thus it can help in changing the company’s product cost at different levels of volume.
Issues with Standard Cost Accounting Homework Help
1. Cost plus contracts
2. Slow feedback
3. Unit level information
4. Fast paced environment.
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