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standard cost cardit is a card record of the standard or expected costs in producing a specified output this gives the physical quantities of
prepare the material cost budget of products of a companyfor a company along with many products a periodic budget would be developed given as assume
standards and budgetsbudgets like you recall from the previous section are simply plans for expected future performance expressed in quantified
standards in standard costing1 the type of standard utilized basic attainable ideal current directly affects the level of the variances that can
attainable standards and current standardsalthough the standard must be set high sufficient that achievable and it has to be worked for attainable
types of standard coststhe standard cost set could be ideal basic attainable or currenti basic standards these are long term standards that would
standard costinga standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions it
process of setting standards in standard costingestablishing correct a standard is extremely important due to the accuracy of the standards usually
standard costs establish the minimum desirable costswhen actual costs incurred exceed or else are below the standard costs we after that investigate
standard cost and standard costingto effectively control the costs of a certain organization we require a yard stick to measure the real performance
standard costit is especially serious that you establish a link between standard budgets and costs at this point you require putting in your mind to
stages of implementation of zero based budgeting 1 definition of decision packageit is the comprehensive description of the organizations activities
advantage and disadvantages of zero based budgetingadvantages 1 resources allocation is more efficient2 focus attention on values for money and makes
zero based budgeting it is referred to also like priority based budgeting it is a cost advantage approach budgeting where it is assumed that the cost
example of flexible and fixed budgeta company has budgeted to produce and sell 100000 units of cakes throughout the next period the selling price per
choice of budget flexing basis the most suitable flexing basis must be considered where it assists in the comparison of alternative budget data at
flexible budgetflexible budget is a budget that is designed to change in accordance along with the level of activity attained it includes budgeting
fixed budgetingthe master budget discussed before is a fixed budgeta fixed budget is defined via as 1 just one level of activity2 not adjusted to
cash budget - budgetary planning and controlthis can records the cash outflows and inflows that are expected to take place in respect of every
capital expenditure budget this represents the expenditure on all fixed assets throughout the budget period addition intended to profit future
development and research cost budgetthese are costs that are discretional in nature such as they are determined on need basis via the managers
administration costs budget this represents the costs of all administration expenses every department or budget centre will be responsible for the
distribution and selling cost budget this is the forecast of all costs incurred in distributing and selling the companys product throughout the
factory overhead budgetthis budget represents the forecasts of each the production variable and fixed and semi-variable overheads to be incurred
direct labour budgetit represents the forecasts of indirect and direct labour requirements to meet the demands of the company throughout the budget