Questions:
1. Define ‘Standard Cost& and ‘Standard Costing&. In which type of industries standard costing can be employed?
2. What is the difference between ‘budgetary control& and ‘standard costing&?
3. Discuss the benefits and limitations of standard costing.
4. Explain the various types of standards.
5. Discuss briefly the procedure of establishment of standard costs regarding material, labour and overheads.
6. Describe and compare the different methods of accounting for standard costs.
7. Define and explain briefly the following terms:
• Material price variance
• Material usage variance
• Material mixture variance
• Material yield variance
8. Define and explain briefly the following terms:
• Wage rate variance
• Labour efficiency variance
• Variable overhead efficiency variance