Standard costing

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Standard costing   

Standard costing is an overall estimation made by a company on the price it will cost for operations. This includes, materials, labour and manufactoring overheads.  A company creates the standard cost based on normal operations from previous years but there is often a difference between the standard cost and the actual costs. This difference is called a variance. When the actual cost os greater than the standard cost then the company profit will be lower than expected and this is called adverse. If the actual costs are…


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