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Unit 8: Standard Costing
7. The management may certainly fix standards on the basis of maximum possible efficiency, Notes
possibly with an assumption of no wastage, no idle time, etc. Do you think this is
realistic?
8. As ‘standard’ is a relative expression; one has to determine for oneself what one deems
appropriate as a ‘standard’. Discuss.
9. Suggest some drawbacks of standard costing.
10. Standard costs and estimated costs are predetermined costs, but their objectives are
different. What are the key points of differences between standard cost and estimated
cost?
Answers: Self Assessment
1. Historical costing 2. Revenue standards
3. Profit 4. Variance analysis
5. variable 6. (d)
7. (a) 8. (d)
9. (b) 10. past performance
11. variances 12. true
13. false 14. false
15. false 16. realistic
17. standard cost sheet 18. current standard
8.10 Further Readings
Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.
Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill
Publishing Company Ltd.
M.N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing House
(P) Ltd.
M.P. Pandikumar, Management Accounting, Excel Books.
Online links www.authorstream.com
www.allinterview.com
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