中科新闻网深圳皇岗中学怎么样:会计专业英语1[英译中]
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The Standard Cost System
In general, a standard cost system consists of three basic activities. They are (1) standards setting, (2) accumulation of actual costs, and (3) variance analysis.
1. Standards setting
In establishing a standard cost system, the first step is the creation of standards. To setting standards is very complex, one that requires skills that often surpass the expertise possessed by the average accountant. Generally, a team effort is needed and involves participation from many different areas within the organization. In a manufacturing entity, for example, all persons who have responsibility for prices and quantities of finished product inputs should assist in the standard-setting process.
Poorly conceived standards result in inappropriate measures of performance and may cause serious problem with employee acceptance of the system. Very tight standards calling for performance levels that impossible to reach may cause behavioral problems. Very loose standards result in a lack of productivity which negatively affects profits and the firm’s competitive position and ultimately its long-term survival.
Direct material standards are based on product specifications established after an intensive analysis of material requirements has been performed. Supposedly, this analysis of material requirements has found the best kind of material for the purpose, and has determined the proper quantity of material to be used, after making due allowances for the processing losses that are an inevitable part of most firm’s manufacturing activities. The standard direct material cost is then determined by multiplying the standard quantities by the standard prices supplied by a company’s purchasing department. It is assumed that the purchasing department has investigated （调查，研究） sources （发源地） of supply and has selected vendor (销售员) who can provide the desired quantity and quality of materials at a good price, and that questions concerning economical quantities to buy have been answered. Since material prices are often very difficult to predict, there is a tendency in practice for firms to use prevailing prices as their standard prices and to make frequent changes to keep their standard price sheets up to date.
In general, a standard cost system consists of three basic activities. They are (1) standards setting, (2) accumulation of actual costs, and (3) variance analysis.
1. Standards setting
In establishing a standard cost system, the first step is the creation of standards. To setting standards is very complex, one that requires skills that often surpass the expertise possessed by the average accountant. Generally, a team effort is needed and involves participation from many different areas within the organization. In a manufacturing entity, for example, all persons who have responsibility for prices and quantities of finished product inputs should assist in the standard-setting process.
Poorly conceived standards result in inappropriate measures of performance and may cause serious problem with employee acceptance of the system. Very tight standards calling for performance levels that impossible to reach may cause behavioral problems. Very loose standards result in a lack of productivity which negatively affects profits and the firm’s competitive position and ultimately its long-term survival.
Direct material standards are based on product specifications established after an intensive analysis of material requirements has been performed. Supposedly, this analysis of material requirements has found the best kind of material for the purpose, and has determined the proper quantity of material to be used, after making due allowances for the processing losses that are an inevitable part of most firm’s manufacturing activities. The standard direct material cost is then determined by multiplying the standard quantities by the standard prices supplied by a company’s purchasing department. It is assumed that the purchasing department has investigated （调查，研究） sources （发源地） of supply and has selected vendor (销售员) who can provide the desired quantity and quality of materials at a good price, and that questions concerning economical quantities to buy have been answered. Since material prices are often very difficult to predict, there is a tendency in practice for firms to use prevailing prices as their standard prices and to make frequent changes to keep their standard price sheets up to date.
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