Issues in Standard Costs & Budgeting



Issues in Standard Costs and Budgeting

Introduction

Standard cost method is not merely a method of accounting. It is the ratio comprehensive management tool, the essence of which is a method of management by exception. The basis of meth- standard cost is always setting standards and identifying cost differences between actual and standard costs, i.e. deviations. The main advantage of the procedure according to variations (or exception) is that the standards have been previously recognized as a necessary cost. Therefore, the usual management of the production process considerably easier.

Discussion & Analysis

Budgeting is the lowest level of planning, ...