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Chapter 10: Standard Costing -Part 2
Standard costs are pre-determined cost. Standard costing is a control system for comparing the planned costs and revenues with actual results in order to report variances for the purpose of performance measurement and control.
By the end of this lesson, you should be able to:
- calculate direct labour rate variance, direct labour efficiency variance, direct labour idle variance;
- calculate direct material price variances, direct material usage variance; and
- explain the causes generated from variance