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Standard costs are costs associated with the direct costs of labour, material and manufacturing overhead of any industry. These cost figures are used by these companies in lieu of the actual costs of the products. This also implies that the costs of selling goods will be not their actual costs but rather the standard or expected costs relevant to those goods. To help you understand these theories of standard costs, myhomeworkhelp.com has come up with the new, innovative and pragmatic approach to learning things in the simplest of ways by using Components of Standard Cost Assignment Help.
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The major use of standard costs is found in managing the firm in a more efficient manner. Through the variance values obtained, comparison results between actual costs and standard costs could be drawn easily. For when actual costs exceed standard costs, then the situation is considered to be unfavourable as the company’s profits will be lower compared to what was expected.
On the other hand, when standard costs exceed actual costs, then the variance value is favourable as the company is likely to make more profits than was expected. However, for either of these outcomes to hold, the assumption of everything else remaining constant has to be made in the foremost. To learn more about standard costs, opt for Components of Standard Cost Homework Help.
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