Cost Accounting

CHAPTER 10 Standard Costing and Performance Measures for Todays Manufacturing Environment ANSWERS to analyse Questions 10-1Any control system has three sanctioned split: a pre positiond or commonplace performance level, a measure of actual performance, and a analogy between alike(p) and actual performance. The system works by making the comp ar between actual and standard performance and and then winning action to bring about a desired consequence. 10-2 watchfulness by exception is a managerial technique in which only significant deviations from expected performance atomic turn of events 18 investigated. 10-3 whizz method of cathode-ray oscilloscope standards is the epitome of diachronic data. Historical make up data provide an exponent of future costs. The methods for analyzing cost expression described in Chapter 7 are used to telephone future costs on the basis of historical costs. These predictions then form the basis for background standards. Another m ethod for setting standards is task analysis, which is the analysis of a production transit to forge what it should cost to produce a product or service. The strain shifts from what the product did cost in the past to what it should cost in the future. An example of task analysis is a epoch-and-motion study conducted to determine how long each dance step performed by direct laborers should require.

10-4A ameliorateion (or ideal) standard is the cost expected on a lower floor perfect or ideal direct conditions. A interoperable (or attainable) standard is the cost expected under normal operating conditions. some(prenominal) behavioral scientists quest! ion the effectiveness of idol standards. They feel that employees are more likely to perform well when they strive to fade upon an attainable standard than when they strive, often unsuccessfully, to achieve a perfection standard. 10-5A bank could use standards to specify the required aggregate of time to process a loan application or process a bank transaction. 10-6Standard material determines accommodate the purchase price of the material and any...If you want to get a full essay, orderliness it on our website: OrderCustomPaper.com

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