Standard Costing Flashcards Preview

CIMA C01 > Standard Costing > Flashcards

Flashcards in Standard Costing Deck (17)
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0
Q

marginal

A

Variable

1
Q

Standard Costing

A

Is a carefully predetermined unit cost which is prepared for each cost unit The standard becomes the target Analysing variances can help managers focus on areas requiring the most attention, this is called managing by exception

2
Q

Standard Cost Card

A
3
Q

Ideal Standard

A

Perfect conditions Everything goes as expected Unattainable

4
Q

Attainable Standard

A

A realistic target Most common

5
Q

Current Standard

A

What is happening now No incentive for improvement

6
Q

Basic Standard

A

Original standard first set

7
Q

Variable Cost Variances

A
8
Q

Idle Time Variances

A

Always adverse Can be due to; Shortage of work Shortage of material Machine breakdown

9
Q

Reconciling Actual Contribution with Budgeted Contibution

A

Put budgeted contribution at the top and then 1 sales volume contribution variance 2 sales price variance 3 direct material price 4 direct material usage 5 direct labour rate 6 direct labour efficiency 7 variable production overhead 8 variable production overhead efficiency Actual contribution at the bottom

10
Q

Price/ Cost/ Expenditure Variances

FORMULA

A

budgeted price per kg/ hour/ unit

/

actual price per kg/ hour/ unit

x

actual qty

11
Q

Usage/ Efficiency Variances

FORMULA

A

Budgeted Qty Hours/ kg/ units

-

actual qty hours/ kg/ units

x

standard (budgeted) price

12
Q

Sales Volume Contibution Variance

A

actual sales volume

-

budgeted sales volume

x

standard contribution per unit

13
Q

Sales Price Variance

A

What it should have been (actual units x bud SP)

-

actual sales

14
Q

Variable Overhead Efficiency

A

what it should be (no of units x no of hours)

-

what it was

x

cost per hour

15
Q

Labour Rate Variance

A

no of units x number of standard hours required per unit

-

what was actually used in hours

x

hourly rate

16
Q

Idle Time Variance

A

idle time hours

x

hourly labour rate