Your group is required to prepare a report to comment on the suitability of standard costing for a manufacturing company
Background:
You were recently employed as a management trainee in a manufacturing firm. The Finance Director of your company had recently attended a seminar on standard costing and would like to a taskforce was formed to explore the possibility of implementing standard costing in the company. You were assigned to the taskforce due to your accounting background.
Required:
Your group is required to prepare a report to comment on the suitability of standard costing for a manufacturing company of your group’s choice (your company). The report should cover the followings:
a) A description of your company
b) A description of the standard costing and its features
c) In what ways standard costing can facilitate planning and control activities in your company
d) A discussion on whether the standard costing is suitable to your company
Hint
Accounting & Finance"Standard costing is the preparation of standard cost (the cost expected to be incurred while producing goods or providing services) and applying them to measure the variations caused by the differences between the standard and actual costs. The features of standard costing include:a. It is a pre-determined costb. It is a future cost c. Estimated by past costing inform...
"Standard costing is the preparation of standard cost (the cost expected to be incurred while producing goods or providing services) and applying them to measure the variations caused by the differences between the standard and actual costs. The features of standard costing include:
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