Describe four types of standard.-新东方在线职业题库

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Describe four types of standard.

Chapter20Standardcosting

Types of standard

(i) A basic standard is a standard established for use over a long period from which a current standard can be developed,

(ii) An ideal standard is one which can be attained under the most favourable conditions, with no allowance for normal losses, waste or idle time,

(iii) An attainable standard is one which can be attained if a standard unit of work is carried out efficiently. Allowances are made for normal losses,

(iv) A current standard is based on current levels of performance. Allowances are made for current levels of loss and idle time, etc.

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What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.

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