ACCA F5 题型归类--variance.doc

General standard costing outline the use of standard costing standard costing is useful where there is a significant degree of repetition in the production process. This is because the standard costs are averages. Valuation of inventories and costs of production for reporting purposes Provide an excellent basis which enables costs to be monitored, reviewed and controlled by management Enable the exception reporting through the use of variance analysis to control costs with a lower degree of effort and less time Assisting in the budgeting process Establish a good basis to evaluate managerial performance Motivation of staff by setting demanding and achievable standards – attainable standards Improving efficiency. Standard setting is often viewed as a way of understanding the detail of objectives and processes. If standards are an accurate reflection of a process, then they can be used to highlight ways of improving efficiency and act as signals when the process becomes inefficient. 【comparison – corrective actions】 discuss the reasons why standars have to be reviewed once standards have been set, they cannot be assumed to be accurate over long periods of time. standards have to be reviewed to enable the benefits of standard costing to continue. For example, in environments which continuously seek greater efficiency and reduced costs of production, standards have to change to reflect such improvements. In a fast-moving environment, standards can very quickly become out of date. Moverover, other purposes of standards are undermined, if they are not continually reviewed: The motivational impact of standards Assessment of managerial performance Reporting procedures The credibility of standards in their role in assisting with the budget setting Budget and Standards: standards can be used in these budgets -- Participation and imposed budgets; incremental budget; fixed budget; Rolling budget,ZBB and ABB have different kind of standards examine the impact of the