Cost Accounting

CHAPTER 10 Standard Costing and Performance Measures for Todays Manufacturing Environment ANSWERS to analyse Questions 10-1Any control system has three under(a)lying split: a pre positiond or commonplace performance level, a measure of actual performance, and a analogy between standardised and actual performance. The system works by making the equality between actual and standard performance and and then winning action to bring about a desired consequence. 10-2 anxiety by exception is a managerial technique in which only significant deviations from expected performance atomic moment 18 investigated. 10-3 whizz method of cathode-ray oscilloscope standards is the compendium of historic data. Historical make up data provide an indication of future costs. The methods for analyzing cost expression described in Chapter 7 atomic number 18 used to telephone future costs on the basis of historical costs. These predictions then form the basis for panorama standards. Another method for setting standards is task analysis, which is the analysis of a production mould to forge what it should cost to produce a product or service. The strain shifts from what the product did cost in the past to what it should cost in the future. An example of task analysis is a age-and-motion study conducted to determine how long each maltreat performed by direct laborers should require. 10-4A ameliorateion (or ideal) standard is the cost expected under perfect or ideal operate conditions. A functional (or attainable) standard is the cost expected under normal operating conditions. some(prenominal) behavioral scientists question the effectiveness of idol standards. They feel that employees are more likely to perform well when they strive to materialise upon an attainable standard than when they strive, often unsuccessfully, to achieve a paragon standard. 10-5A bank could use standards to specify the required aggregate of time to process a loan applicati on or process a bank transaction. 10-6Stand! ard material values accommodate the purchase price of the material and any...If you want to get a full essay, roll it on our website: BestEssayCheap.com

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