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January 4, 2020 at 8:05 pm
Would it be ok to say that standard cost refers to the same as the budgeted cost?
John Moffat says
January 5, 2020 at 9:17 am
January 6, 2020 at 12:16 am
Thank you sir
January 6, 2020 at 7:28 am
You are welcome 🙂
November 5, 2019 at 2:17 pm
Dear Mr Moffat
When calculating material quantity variance you found out you saved 136 kilograms. When you wanted to calculate your saving in terms of money you multiplied 136 kilograms by standard price which is 4,50 dollars. Why didn’t you use actual cost when you calculated your savings ? Why we have to use standard cost when we calculate savings. Standard cost is not real cost so why do we use standard cost when we calculate our real saving in terms of money ?
May 26, 2020 at 5:17 pm
I think that would come under financial accounting, but management accounting we should use std cost of material.Lets wait for Sir John to reply.
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