To comprehend a number of procedures that are to be considered while establishing cost standards homework answers for your homework consumes a lot of time and requires rigorous efforts from the student. Making efforts to understand a topic is a good thing, but it leaves one with absolutely no time for upcoming exam preparation.
This very issue led to the establishment of several homework help services that are now available on the web with an aim to help students of various universities with their homework.
What is the complexity associated?
Assigning standard costs to various products and services is one of the most complex and tedious tasks in business. To deal with the answers concerning the topic, what one needs is a systematic understanding of the concept.
Various homework help services provide you with such systematic study of the subject you’re dealing with by following a particular pattern in the answers they deliver to you. To give you a basic understanding of the concept, we are discussing here, in brief, the various subheads that encompass the procedure of assignment of cost standards.
Take the first step by understanding the meaning of cost standards
Understanding the meaning and definition of cost standards is the foremost step you take while studying the process of assignment of cost standards to a company’s manufactured goods and services. In the same way, you need to comprehend it while establishing cost standards homework answers.
Encapsulating the meaning of cost standards in a few words, it is an estimated future cost of a product as worked out by the management wing of the company through continuous mutual discussions and consideration of welfare of the company’s economy.
Aim of assigning standard costs is to ensure future profits
Being one of the functions of financial and accounting wing of the company, assigning standard costs to various products requires consideration of various aspects that are related to the past and present performance and demand of those products in the market.
After these considerations are taken into account, measures are adopted, and decisions are taken regarding the assignment of a standard cost to those products. This standard cost must work out in favor of the company’s financial benefits.
Estimation of standard costs is one of the tools of cost control
You must be aware that cost control is a process whereby the most appropriate and economical way of manufacturing a product is devised. This process involves various tools or techniques, one of which is estimation of standard costs by the management of the company. However, while establishing cost standards homework answers for your homework, one must not forget the crude difference between cost control and standard costs.
Cost control may involve various procedures and covers all aspects of business like planning, motivation, communication, etc., estimation of standard cost is one of those various procedures included in the strategic process of cost control.
This difference may be understood with the help of an example. If one wants to cook a dish for himself, he has to follow some steps like making a list of all the required ingredients, walking down to the market, buying all the required raw materials, walking back home and cooking the dish. The entire process from preparation of list to cooking here represents the process we call as cost control, whereas a step in the process, say preparing the list of required items represents assignment of standard cost.
Estimation of standard costs requires some basic abilities
Â We have discussed pretty enough about the meaning and objectives of establishing standard costs. However, the basic requirements for the whole procedure must not be forgotten to be taken into account while establishing cost standards homework answers.
Some basic abilities and facilities that are necessary for a business firm to possess and avail include – ability to devise meaningful and worthy standards, a system that can calculate the actual costs as well as the standard costs at the same time and facilities to calculate the variances from time to time so that improvement measures can be adopted.
Work ability of the followed procedures is done by comparison
Whether the procedures followed to achieve the target of standard costs are on or off target is analyzed by making a comparison of the estimated costs of the product with their actual costs after the time specified for the achievement.
Variance is one term to be understood while establishing cost standards homework answers for your homework. The deviation of actual cost of the product from its standard cost is, in business terms, the called variance.
If the variance is positive, that is, the actual cost of product is greater than the estimated cost, it indicates the need for the company to change the present measures it is following. On the other hand, if the variance is negative or zero, that is, the actual cost is either less than or equal to the standard cost, it implies that the measures company has adhered to have worked out very well in favor of the company and should continue to be followed.
However, with changing time, the company must continue to devise new favorable measures to be adopted in future. Keeping the above-mentioned points in mind, working for your homework such as establishing cost standards homework answers becomes an easy task. In addition, if one aims to produce impeccable assignments devoid of errors, one can opt for several online homework help services, which deliver assignments written by highly experienced scholars.