PPT: Standard Costing | Cost Accounting - B Com PDF Download

 Page 1


STANDARD COSTING
Page 2


STANDARD COSTING
Topics to be discussed
1. Meaning of standard, standard cost and standard costing.
2. Steps involved in standard costing.
3. Types of standards.
5. Establishment of standards for different elements of cost.
6. Variances and analysis of variances.
7. Investigation of variances and treatment of variances.
8. Advantages and disadvantages of standard costing.
9. Conclusion.
10. Bibliography.
Page 3


STANDARD COSTING
Topics to be discussed
1. Meaning of standard, standard cost and standard costing.
2. Steps involved in standard costing.
3. Types of standards.
5. Establishment of standards for different elements of cost.
6. Variances and analysis of variances.
7. Investigation of variances and treatment of variances.
8. Advantages and disadvantages of standard costing.
9. Conclusion.
10. Bibliography.
Standard – It is used to refer to the predetermined rate 
e.g. Rs 10 per unit
Standard costs - are predetermined cost which may be 
used as a yardstick to measure the efficiency with 
which actual costs has been incurred under given 
circumstance. 
Standard Costing – This is a technique which uses 
standards for cost and revenues for the purpose of 
control through variance analysis. 
Page 4


STANDARD COSTING
Topics to be discussed
1. Meaning of standard, standard cost and standard costing.
2. Steps involved in standard costing.
3. Types of standards.
5. Establishment of standards for different elements of cost.
6. Variances and analysis of variances.
7. Investigation of variances and treatment of variances.
8. Advantages and disadvantages of standard costing.
9. Conclusion.
10. Bibliography.
Standard – It is used to refer to the predetermined rate 
e.g. Rs 10 per unit
Standard costs - are predetermined cost which may be 
used as a yardstick to measure the efficiency with 
which actual costs has been incurred under given 
circumstance. 
Standard Costing – This is a technique which uses 
standards for cost and revenues for the purpose of 
control through variance analysis. 
Setting standard costs for different 
elements of costs
Recording of actual costs
Comparing between standard costs 
and actual costs to determine the 
variances
Analyzing the variances to know the 
causes 
Reporting the analysis of variances to 
management for taking appropriate 
actions wherever necessary
Standard costing involves the 
following steps:
Page 5


STANDARD COSTING
Topics to be discussed
1. Meaning of standard, standard cost and standard costing.
2. Steps involved in standard costing.
3. Types of standards.
5. Establishment of standards for different elements of cost.
6. Variances and analysis of variances.
7. Investigation of variances and treatment of variances.
8. Advantages and disadvantages of standard costing.
9. Conclusion.
10. Bibliography.
Standard – It is used to refer to the predetermined rate 
e.g. Rs 10 per unit
Standard costs - are predetermined cost which may be 
used as a yardstick to measure the efficiency with 
which actual costs has been incurred under given 
circumstance. 
Standard Costing – This is a technique which uses 
standards for cost and revenues for the purpose of 
control through variance analysis. 
Setting standard costs for different 
elements of costs
Recording of actual costs
Comparing between standard costs 
and actual costs to determine the 
variances
Analyzing the variances to know the 
causes 
Reporting the analysis of variances to 
management for taking appropriate 
actions wherever necessary
Standard costing involves the 
following steps:
In simple Words:-
• Standard Costs
• Actual Costs
• Estimated Costs
Standard 
costing 
involves in 
determining