管理会计（双语）-7.pptVIP

Chapter 7 Standard costing Chapter contents: 1. Nature of standard costing 2. Calculation of variances 3. Causes and interdependence of variances 1. Nature of standard costing A few definitions Types of standard A few definitions Standard costing Standard cost Variance analysis Types of standard Basic standard Ideal standard Attainable standard Current standard 2. Calculation of variances Direct materials cost variances Direct labor cost variances Variable overhead variances Fixed overhead variances Non-production overheads variances Sales variances note: Fixed overheads variances= Fixed production overheads variances For absorption costing, fixed overheads will be absorbed into cost units. The absorption basis is labor hours, the same as variable costs, which is very common in the exam questions. Standard cost card Materials:1)standard usage(kg)/unit 2)standard price/kg Labor:1) standard hours /unit 2) standard rate/hr Variable overheads: 1) standard hours /unit 2) standard absorption rate/hr Fixed overhead: 1) standard hours /unit 2) standard absorption rate/hr Key point to remember: A variance is the difference between what it should have cost and what it actually cost for the actual level of production. Direct materials cost variances Direct labor cost variances Variable overhead variances Fixed overhead variances Non-production overheads variances Non-production overheads: selling and administration overheads Expenditure variance =budgeted expenditure-actual expenditure Sales variances Variances of marginal / absorption costing Fixed production overhead variances Sales volume variance Operating statement Reconciliation of budget and actual profits-presenting operating statements Statement Budgeted profit Add: Less: Actual profit 3. Causes and interdependence of variances Causes Interdependence of variances * * Standard Material Cost/unit Standard Labor cost/unit Standard variable overhead cost/un