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Cost standards refer to those costs that follow the market standards and that they find their extensive use in enterprises which compare them with the actual costs that are incurred by those enterprises. This approach in collaboration with variance analysis can help in measuring efficiency in any firm. Students face difficulties in understanding the methods pertinent to Establishing Cost Standards and to provide them the proper guidance myhomeworkhelp.com has conceived of the approach of Establishing Cost Standards Assignment Help.
Further info on Establishing Cost Standards
With cost standards, you can put in expected costs in place of actual costs in the accounting records and then periodically track the variance values so obtained. This method is used by those companies who do not go for cost layering systems like FIFO and LIFO, which require a huge amount of historical data on costs. Other than this, another reason for using the cost standards would be time management. By not causing any unnecessary delays in search of actual costs of items used in the production by a company, it chooses to work with the estimated costs to speed up the process instead.
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