can any body esly define standard costing
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(Guest)
Standard costing is a technique which establishes predetermined estimates of the costs of products & servces known as standard costs & then compared these standards(predermined costs)with actual costs incurred.The difference between 2 is called Variance.
for understanding...One has to think on the perspective of company & set standard for expenses(b4 it incurred)then compare it with actual expense(when it incurred),if actual expense is less than the standard,as it is better for company ,hence known as Favourable.otherwise unfavourable.
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