ACCA MA Syllabus E. Standard Costing - Standard cost per unit - Notes 3 / 3
Standard Cost Card
A standard cost card shows full details of the standard cost of each product.
standard cost card - product x | ||
$ | $ | |
direct material x kgs @ $x | x | |
x lts @ $x | x | |
-- | ||
x | ||
direct labour x hrs @ $x | x | |
x hrs @ $x | x | |
-- | ||
x | ||
-- | ||
standard direct cost | x | |
variable production overheads | x | |
-- | ||
standard variable cost of production | x (marginal costing) | |
fixed production overhead | x | |
-- | ||
standard full production cost | x (absorption costing) | |
administration & marketing overhead | x | |
-- | ||
standard cost of sale | x | |
standard profit | x | |
-- | ||
standard sales price | x | |
== |
A variance is the difference between a planned, budgeted, or standard cost and the actual cost incurred.
The same comparisons may be made for revenues.
The process by which the total difference between standard and actual results is analysed is known as variance analysis.
When actual results are better than expected results, we have a favourable variance (F).
If, on the other hand, actual results are worse than expected results, we have an adverse variance (A).
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Standard, marginal and absorption costing
Syllabus E. Standard Costing
E1. Standard Costing Systems
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Sales price and volume variances
Syllabus E. Standard Costing
E2. Variance Calculations and Analysis