Ans : i) Standard Costing helps in better analysis of increase or decrease in cost. In Standard costing budget is developed for different element of cost such as Material , Labour, Fixed Overheads and variable Overheads. Then these budget will be compared with the Actual result and any favorable and unfavorable balance is reported to the management, which will take further action to resolve these unfavorable balance situation.
ii) Cost can be classified as follows
a) Direct material Cost
b) Direct labour cost
c) Variable overheads
d) Fixed Overheads cost
Determine a costing system to use to help better analyze the increase. Explain how this system...
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