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Sir I don’t know why I can’t reply on that previous post of mine containing 5 questions, but sir i apologize for not posting them separately it’s just i thought it might be considered as spamming and i do understand that it’s not a private tution either for me or anyone else, it’s for everyone who use search facility whenever they got any problem on particular question, next time i will post any new question separately, just those which I’ve already posted since i can’t reply on that post, please could you clear my confusion here, i will write it.
Sir first question, could you please re-explain me this point
“Standard product costs apply to manufacturing environments in which quantities of an identical product are output from the production process” of variance analysis being inappropriate for modern manufacturing.Sir second question you said changing environment means cost will change and so standard costing isn’t applicable in those conditions, so that means that point is criticism right? But in bpp kit none of them is considered as criticism, please could you explain this sorry if I’m being dumb.
Sir 3rd question as you said it’s cluster sampling but in bpp text page 32 section 6.10 cluster sampling sir it says it’s a non random sampling method that involved selecting one definable subsection of population, that’s why I’m confused here because quota sampling does interviews while it’s not random, but same for cluster.
And 4th i got it sir, but does multistage/cluster requires sampling frame as well?
And 5th mcq in one mcq which points are true relating to activity based costing but this wasn’t true please could you tell me why
“activity based costs can be used to identify Relevant costs for decision making”, activity based costing makes meaningful information comparing to absorption costing and it can be helpful for decision making, could you tell me why this isn’t true?
That’s it sir thankyou!
Modern manufacturing techniques are less likely to simply produce one identical product.
Q2 You asked why it was a criticism and I explained why. I do not know what BPP may have said in their answer.
Q3 I do not have the BPP Study Text and you need to ask them. I repeat that what I state in my lectures is correct. My lectures cover everything needed to be able to pass the exam well.
Q4 No
Q5 Activity based costing does not identify relevant costs. We have to identify the relevant costs to them be able to use ABC. ABC can be helpful for decision making.
Sir for question 2 it asks in bpp kitt that which of the following criticisms of standard costing apply in all circumstances, that’s why i couldn’t comprehend which of these criticisms would apply there and answer is none of them.
For criticism 1: standard costing can only be used where all operations are repetitive and output is homogeneous
It says in answer criticism 1 has some validity but even where output is not standardised it maybe possible to identify a number of standard components and activities whose costs may be controlled effectively by the use of standard costs.
Criticism 2 which says standard costing cannot be used in environments prone to change, they assume stable condition
Answer criticism 2 also has some validity but the use of information technology means that standards can be updated rapidly and more frequently, so that they may be useful for the purposes of control by comparison
Criticism 3 standard costing assume performance to standard is acceptable and do not encourage continuous improvement.
Answer criticism 3 can also be addressed in some circumstances. The use of ideal standards and more demanding performance can combine the benefits ot continuous improvement and standard costing control.
I don’t understand if all of them are criticisms of standard costing, why it says none of them.
They are all valid criticisms (but not necessarily in all circumstances which is the operative part of the statement).
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