The standard costs should be based on the resources and costs that the business thinks will be used/incurred, so standard costs will be reflected in the business' budget. A business should not use the actual figures directly when calculating standard costs but do remember that the actual costs will often provide the business with useful information about what can be achieved in practice.
This video is really helpful and very informative. Helped me understand this topic a lot better. Thank you a lot.
Yes you are right
Hi, When do we use the flexed budget in the reconciliation of budgeted and actual profit?
Spoof Seleka XX h
Hello, do get the standard cost from the Actuals or from the Budget ?
The standard costs should be based on the resources and costs that the business thinks will be used/incurred, so standard costs will be reflected in the business' budget.
A business should not use the actual figures directly when calculating standard costs but do remember that the actual costs will often provide the business with useful information about what can be achieved in practice.
Please send me ideal standard characteristics
If the volume is bigger will be best
Standard costing is 100 years old and it’s still not particularly helpful for a changing* product mix and different lengths of I production runs