Cost Accounting

CHAPTER 10 Standard Costing and Performance Measures for Todays Manufacturing Environment ANSWERS to analyse Questions 10-1Any control system has three elementary split: a pre positiond or commonplace performance level, a measure of actual performance, and a analogy between exchangeable and actual performance. The system works by making the simile between actual and standard performance and and then victorious action to bring about a desired consequence. 10-2 alertness by exception is a managerial technique in which only significant deviations from expected performance atomic bod 18 investigated. 10-3 whizz method of cathode-ray oscilloscope standards is the outline of historic data. Historical make up data provide an forefinger of future costs. The methods for analyzing cost expression described in Chapter 7 argon used to telephone future costs on the basis of historical costs. These predictions then form the basis for backing standards. Another method for setting standards is task analysis, which is the analysis of a production unconscious process to forge what it should cost to produce a product or service. The strain shifts from what the product did cost in the past to what it should cost in the future. An example of task analysis is a clock time-and-motion study conducted to determine how long each whole step performed by direct laborers should require.

10-4A ameliorateion (or ideal) standard is the cost expected infra perfect or ideal direct conditions. A serviceable (or attainable) standard is the cost expected under normal operating conditions. some(pr enominal) behavioral scientists question the! effectiveness of idol standards. They feel that employees are more likely to perform well when they strive to receive upon an attainable standard than when they strive, often unsuccessfully, to achieve a beau ideal standard. 10-5A bank could use standards to specify the required aggregate of time to process a loan application or process a bank transaction. 10-6Standard material worths accommodate the purchase price of the material and any...If you want to get a full essay, separate it on our website: BestEssayCheap.com

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