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1 Outcome
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2 Overview
Outcome
}By the end of this session you should be able to:
ØExplain the purpose and principles of standard costing
ØExplain and illustrate the difference between standard, marginal and absorption costing
ØEstablish the standard cost per unitunder marginal costing and absorption costing
ØCalculate sales price and volume variance
ØCalculate materials total, price andusage variance
ØCalculate labourtotal, rate and efficiency variances
ØCalculate the variable overhead total,expenditure and efficiency variance
ØCalculate fixed overhead total, expenditure and, where appropriate, volume, capacity and efficiency variance
ØInterpret the variances
ØExplain factors to consider before investigating variances, explain possible causes of the variances and recommend control action
ØExplain the interrelationships betweenthe variances
ØCalculate actual figures or standard figures where the variances are given
ØDiscuss the relative significance of variances
ØExplain potential action to eliminate variances reconcile budgeted profit with actual profit under standard absorption costing
ØReconcile budgeted profit or contribution with actual profit or contribution under standard marginal costing.
}and answer questions relating to these areas.
