Standard costs are commonly used in many accounting applications. In the Standard Costs and Variance Analysis course, we address the situations in which standard costing can be used, its advantages and disadvantages, and how to create a standard cost. We also cover the various types of variances that can be derived from standard costs, including materials, labor, and overhead variances. Finally, we address which variances should be reported, and how to report them to management.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the circumstances under which standard costs can be used.
Specify the different variances applicable to standard costing.
Identify the calculations for each type of standard cost variance.
Major Topics
Overview of Standard Costing
How to Create a Standard Cost
How to Account for Standard Costs
The Controllable Variance
How to Report Variances
