tailieunhanh - Ebook Managerial accounting - Creating value in a dynamic business environment: Part 2

(BQ) Part 2 book "Managerial accounting - Creating value in a dynamic business environment" has contents: Standard costing and analysis of direct costs, flexible budgeting and analysis of overhead costs, investment centers and transfer pricing, capital expenditure decisions, allocation of support activity costs and joint costs,.and other contents. | 10 Standard Costing and Analysis of Direct Costs FOCUS COMPANY >>> THIS CHAPTER’S FOCUS COMPANY is , which supplies fancy desserts to a variety of restaurants, caterers, and upscale food stores in Washington, . The company’s order-taking system is entirely Web-based. Each day, posts its dessert menu on its website, and orders are accepted via the Internet. In this chapter, we explore ’s use of standard costing. A standard-costing system sets predetermined (or standard) costs for each of a product’s inputs, such as direct material and direct labor. Then the actual costs to produce the product are compared with the standard costs that should have been incurred. ’s management uses the standard-costing system to help control the company’s production costs. <<< IN CONTRAST In contrast to the food-processing setting of , we will turn our attention to the financial-services industry. Here we will explore Forest Home National Bank’s (FHNB) implementation of a standard costing system to better manage its business. FHNB uses direct-labor standards to understand and manage its performance of the various service tasks that are required in a modern bank, and variance analysis helps the company to pinpoint opportunities for improvement. After completing this chapter, you should be able to: 10-1 Describe the elements of a cost control system. 10-2 Describe two ways to set cost standards and distinguish between perfection and practical standards. 10-3 Compute and interpret the direct-material price and quantity variances and the direct-labor rate and efficiency variances. 10-4 Explain several methods for determining the significance of cost variances. 10-5 Describe some behavioral effects of standard costing. 10-6 Explain how standard costs are used in product costing. 10-7 Summarize some advantages of standard costing. 10-8 Explain several common criticisms of standard costing. 10-9 Prepare journal .