tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Chapter 23 - Kimmel, Weygandt, Kieso

Chapter 23 - Standard costs and balanced scorecard. In this chapter students will be able to: Describe standard costs, determine direct materials variances, determine direct labor and total manufacturing overhead variances, prepare variance reports and balanced scorecards. | STANDARD COST AND BALANCED SCORECARD Accounting, Fifth Edition 23 After studying this chapter, you should be able to: Distinguish between a standard and a budget. Identify the advantages of standard costs. Describe how companies set standards. State the formulas for determining direct materials and direct labor variances. State the formula for determining the total manufacturing overhead variance. Discuss the reporting of variances. Prepare an income statement for management under a standard costing system. Describe the balanced scorecard approach to performance evaluation. Learning Objectives Preview of Chapter 23 Accounting Fifth Edition Kimmel Weygandt Kieso Both standards and budgets are predetermined costs, and both contribute to management planning and control. There is a difference: A standard is a unit amount. A budget is a total amount Distinguishing between Standards and Budgets LO 1 Distinguish between a standard and a budget. The Need for Standards Illustration 23-1 LO 2 Identify the advantages of standard costs. The Need for Standards Setting standard costs requires input from all persons who have responsibility for costs and quantities. Standards should change whenever managers determine that the existing standard is not a good measure of performance. LO 3 Describe how companies set standards. Setting Standard Costs LO 3 Describe how companies set standards. Ideal versus Normal Standards Companies set standards at one of two levels: Ideal standards represent optimum levels of performance under perfect operating conditions. Normal standards represent efficient levels of performance that are attainable under expected operating conditions. Properly set, normal standards should be rigorous but attainable. Setting Standard Costs Most companies that use standards set them at a(n): optimum level. ideal level. normal level. practical level. Question LO 3 Describe how companies set standards. Setting Standard Costs LO 3 Describe how companies set standards. A | STANDARD COST AND BALANCED SCORECARD Accounting, Fifth Edition 23 After studying this chapter, you should be able to: Distinguish between a standard and a budget. Identify the advantages of standard costs. Describe how companies set standards. State the formulas for determining direct materials and direct labor variances. State the formula for determining the total manufacturing overhead variance. Discuss the reporting of variances. Prepare an income statement for management under a standard costing system. Describe the balanced scorecard approach to performance evaluation. Learning Objectives Preview of Chapter 23 Accounting Fifth Edition Kimmel Weygandt Kieso Both standards and budgets are predetermined costs, and both contribute to management planning and control. There is a difference: A standard is a unit amount. A budget is a total amount Distinguishing between Standards and Budgets LO 1 Distinguish between a standard and a budget. The Need for Standards Illustration 23-1 LO 2 .