Question
In: Accounting
1. Budgetary control and standard costing have the common objective of cost control by establishing pre-determined...
1. Budgetary control and standard costing have the common objective of cost control by establishing pre-determined targets. These two techniques are similar in certain respects but differ in respect of other points.
Require to: Compare and contrast budgetary control and standard costing
In Question 1, student needs to give an introduction about budgetary control and standard costing and then compare and contrast both the methods. (Approximately 550 words)
Solutions
Expert Solution
Budgetary control is the process of determining various actual results with budgeted figures for the enterprise for the future period and standards set then comparing the budgeted figures with the actual performance for calculating variances, if any. First of all, budgets are prepared and then actual results are recorded.
The comparison of budgeted and actual figures will enable the management to find out discrepancies and take remedial measures at a proper time. The budgetary control is a continuous process which helps in planning and co-ordination. It provides a method of control too. A budget is a means and budgetary control is the end-result.
Standard
costing:-Standard Costing discloses the
cost of deviations from standards and clarifies these as to their
causes, so that management is immediately informed of the sphere of
operations in which remedial action is
necessary.
ekkarill92 answered 1 year agoRelated Solutions
A company operates standard costing & Budgetary control system. Following details are available in respect of...
A company operates standard costing & Budgetary control
system. Following details are available in respect of a month.
Required to calculate necessary sales variance. Product Budget
Actual Qty Price Value Qty Price Value A 1000 10 10,000 1200 11
13,200 B 750 20 15,000 700 20 14,000 C 500 30 15,000 600 28 16,800
D 250 40 10,000 200 41 8,200 Total 2500 50,000 2700 52,200 In order
to calculate all the sales variances it is necessary to ascertain ,...
Needs to give a conclusion summarizing the topics discuss about budgetary control and standard costing Marginal...
Needs to give a conclusion summarizing the topics discuss
about
budgetary control and standard costing
Marginal costing and Absorption costing
Break Even analysis
. (approximately 500 words)
Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total...
Milberg Co. uses absorption costing and standard costing to
improve cost control.
In 2016, the total budgeted overhead rate was $1.55 per direct
labour hour. When preparing the budget, Milberg expected a monthly
activity level of 10,000 direct labour hours. The monthly variable
overhead cost budgeted for this level of activity was $9,500.
The following data on actual results are provided for the month
of November 2016.
Materials purchased
20,000 units
Direct labour costs incurred
$36,000
Total of direct labour...
Standard Costing: Planned Variances As part of its cost control program, Tracer Company uses a standard...
Standard Costing: Planned Variances
As part of its cost control program, Tracer Company uses a
standard costing system for all manufactured items. The standard
cost for each item is established at the beginning of the fiscal
year, and the standards are not revised until the beginning of the
next fiscal year. Changes in costs, caused during the year by
changes in direct materials or direct labor inputs or by changes in
the manufacturing process, are recognized as they occur by...
As part of its cost control program, Tracer Company uses a standard costing system for all...
As part of its cost control program, Tracer Company uses a
standard costing system for all manufactured items. The standard
cost for each item is established at the beginning of the fiscal
year, and the standards are not revised until the beginning of the
next fiscal year. Changes in costs, caused during the year by
changes in direct materials or direct labor inputs or by changes in
the manufacturing process, are recognized as they occur by the
inclusion of planned...
1. (A) What do you understand by “Standard Cost” and “Standard Costing”? Explain the different...
1.
(A) What do you understand by “Standard Cost” and
“Standard Costing”? Explain the different types of
Standards
(B) Material Variance:
The Standard material cost of produce One unit of Al Safi Danone
co. is:
1200 kg Material A
@ SR 5000 per kg
800 Kg Material B
@ SR 4000 per
kg
During a period, 50 units of mixture X was produced from the
usages of:
50 tons of Material A
@ SR 4...
1) What is the first budget that should be done and why? 2) Budgetary control is...
1) What is the first budget that
should be done and why?
2) Budgetary control is the use of
budgets in controlling operations. What are the steps in budgetary
control?
2) What is a static budget? Whys is a static budget is an
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4) List the steps in preparing a flexible budget?
5)Responsibility reports differ from budget reports in two
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6) There are three...
Question 1 Comprehensively assess the impact of the Budgeting and Budgetary Control practices on Financial Performance...
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Comprehensively assess the impact of the Budgeting and
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Question 2
Discuss with appropriate empirical evidence the major pricing
decisions that must be made by managers highlighting the current
price decision models, and suggest the developments necessary
before pricing decisions can become more “scientific” in
orientation.
ABC Company applies overhead to products using a pre-determined rate of 125% of direct labor cost....
ABC Company applies overhead to products using a pre-determined rate of 125%
of direct labor cost. ABC Company's accounting records for 2019 indicated the
following costs had been incurred:
Direct materials purchased ................... $122,000
Depreciation, factory equipment .............. 33,000
Direct labor ................................. ?
Utilities..................................... ?
Sales commissions............................. 52,000
Indirect materials............................ 11,000
Depreciation, office equipment ............... ?
Production supervisor's salary ............... 57,000
Advertising................................... 66,000
60% of the utilities relate to the factory while 40% of the utilities relate
to the general...
ABC Company applies overhead to products using a pre-determined rate of 125% of direct labor cost....
ABC Company applies overhead to products using a pre-determined rate of 125%
of direct labor cost. ABC Company's accounting records for 2019 indicated the
following costs had been incurred:
Direct materials purchased ................... $122,000
Depreciation, factory equipment .............. 33,000
Direct labor ................................. ?
Utilities..................................... ?
Sales commissions............................. 52,000
Indirect materials............................ 11,000
Depreciation, office equipment ............... ?
Production supervisor's salary ............... 57,000
Advertising................................... 66,000
60% of the utilities relate to the factory while 40% of the utilities relate
to the general...
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