Improved cost control: Companies can have higher amount of cost control by setting cost control standards for measuring what types of cost are incurred and what kind of variances occur. Variance shows where the things doesn’t go as planned and thus lead to the difference in the estimated and the actual data. Besides helps in judging the capabilities of the manager in controlling and influencing the cost incurred in the organization.
Budgeting: A budget always portrays the standard or the estimated cost as it is impossible to judge the right amounts beforehand. So, budget is used to compare the actual results with the estimated one.
Possible reductions in production costs: The standard cost system help in cost saving and make the employees aware about the ways to save cost and seek help from improved methods of doing a task or a job. Thus, in this way companies achieve cost reduction and ultimately achieving their goals and objectives.
Price formulation: If the company is dealing in the customized product then the standard cost of the generating a product will be treated as the projected cost of a customer’s requirement, to which the margin cost will be added. This system also consider the changes in the company’s production cost.
More useful information for managerial planning and decision-making: Management prepares estimated cost standards and if they succeeds in managing different cost incurred in the company then as a result, management can use these estimated costs in making more appropriate budgets. Standard cost system is very useful for the upper level management in planning and in decision making.
Disadvantages of standard cost system
Controversial materiality limits for variances: The management is responsible to find out what is the reason for material or unusual variance as materiality includes individual judgment.
Cost plus contracts: If you are working under a contract where you sell the product to the customers at the cost incurred and plus the profit, then the actual cost should be used rather than the standard cost.
Non-reporting of certain variances: Workers doesn’t always report all the variances and in fact doesn’t report the negative exception and would try to conceal the facts. By hiding the facts, the workers diminishes the effectiveness of the budgeting.
The calculation of variance is a very complex system and a very important pay of standard costing system.
Drives inappropriate activities: In the urge to correct the variances reported in the standard costing system the management may take incorrect actions. For example, the company would buy raw material in bulk to improve the purchase price variance, etc.
How to create a standard cost
Initially, the standard cost can be calculated easily by calculating the average cost incurred over the past few years and should be analyzed and then should attain a conclusion. However, there are many factors which should be kept in mind before setting a standard cost. They are:
Equipment age: When the end of the machinery is approaching, it becomes very clear that it may produce very less productive useful material and will produce more of scrap or the not so useful material for a company.
Equipment setup speeds: Generally, it takes a huge time to setup equipment in the production run and a huge amount of cost is involved but if the company works on the cost reduction plan, this can help the company in generating lower overhead cost.
Labor efficiency changes: if the company shifts from manual work to automated work such changes will hereby impact the number of labor force required in the company to produce a product.
Labor rate changes: It is better for a company to set a particular date at which the employees will receive their pay hike or set it according to the labor union contract.
Learning curve: As the number of products produced increases, it makes production staff evident at doing so. Thus, the standard labor cost should decline as production volumes rises.
Purchasing terms: It is up to the company that how it wants to fluctuate its prices and how effectively it can do cost cutting. Like for example, it can change the supplier from which the company is purchasing the product, but purchasing at different prices.
Any of the factor can play a major role in setting an effect standard cost thus, each aspect of such factors should be taken into consideration.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!