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Accounting for Managers
Notes
Figure 10.2
Standard Costing System
Establishment of a Cost Centre
A centre at which/by whom the cost is ascertained for cost control
Classification of Accounts
An appropriate classification of accounts required for speedy analysis
Codes can be suggested to identify the various accounts easily
Organization of Standard Costing System
Establishment of Committee
Determination
Committee consists of all departmental heads
of standards
For setting of standards
Supplies Information
Cost Manager
(Coordinator) Coordinates Committee
Setting of Standards
Material, Labour and Overheads
Understanding Price Change Intimation for Revision Revision Suggestion
212 LOVELY PROFESSIONAL UNIVERSITY
