Page 98 - 5.2 i. Manac Costing ITC Summarised Notes
P. 98
STANDARD COSTING
Standard Costing Has Two Principal Uses
• To value inventory (if the standard cost
approximates the actual costs).
• To act as a control device by establishing standards
(expected costs) and comparing actual costs with
the expected costs (variance analysis).
To avoid meaningless variances standards should be
continuously reviewed to ensure that they reflect
current targets.
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