Page 13 - PM Integrated Workbook 2018-19

A revision of Management Accounting (MA) topics

Standard costing is most suited to organisations with:

Mass production Repetitive
of homogenous
products assembly work

 The large scale repetition of production allows the average usage of resources
to be determined.

 Standard costing is less suited to organisations that produce non-homogenous
products or where the level of human intervention is high.

Illustrations and further practice

Now try TYU 1.

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