Question

What is standard costing, and when is it used? Give an example of a well-known company that you think would use standard costing methods and explain why.

It has to be 250 words. Please do not copy and paste from other websites. Thank you!

Answer 1

ANSWER:

• Standard costing accounting is a accounting framework utilized by a few and entries to recognize the distinctions for differences between the real expense of the merchandise that are planned and the cost that ought to have happened for genuine products delivered.
• Standard quick are typically related of direct material, direct work and assembling overhead. As opposed to sending the real expense of direct material, direct work, fabricating overhead to an item numerous producers dole out the normal or standard expense.
• Typically standard expense are utilized in the association which are in assembling exercises this association set a few gauges underway of specific merchandise with some evaluated cost and contrast the actuals and the assessed standard to the item in the event that there is any deviation, at that point the executives experience that and explore purposes behind the deviation and control that deviation.
• A main pharmaceutical organization was utilizing the standard costing in their creation procedure.

Clarification :

• As we probably am aware the assembling of medications include in the mix of a few medications
• Every single medication must be made by association very consideration so for separation and to keep up specific principles in assembling of prescriptions they utilize standard costing.
• In standard costing the maker will gauge the use of crude material before the creation has begun so the measure of crude material will be concluded preceding assembling in medication to get an ideal medication.
• At that point if there is any deviations from models there is an opportunity of ruining whole medication so they will take care that no medication ought to have any deviations.
• All these setting gauges and computation of deviations are accessible in standard costing so that is the motivation behind why the pharmaceutical organizations utilize standard costing.
• These are on the whole the data required to comprehend the given inquiry.

I trust, all the above given data and clarifications are valuable and accommodating to you.