Standard costing sets predetermined costs for materials, labour and overheads. Comparing actual results with standards isolates price, usage, efficiency and volume variances so that management can act on the cause.
Scope of service
- Engineering and historical basis for standards
- Material price and usage standards
- Labour rate and efficiency standards
- Overhead absorption at standard capacity
- Periodic revision of standards
Regulatory framework
- CAS 2 (Capacity Determination)
- CAS 6 and CAS 7
Typical professional activities
- Standard cost cards
- Monthly variance reports
- Root-cause review with production and purchase
Applicable industries
Relevant articles and resources
The information on this page describes the nature of the service. It is not advice on any specific matter. See the disclaimer.