Standards
You'll learn what standard costing is and how to build a standard cost card—a crucial foundation for variance analysis in Performance Management.
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In this lesson
- 0:00 Lesson overview: eight key areas
- 1:02 Standards and standard cost fundamentals
- 1:51 Standard cost card worked example
- 2:28 Direct labour and total standard cost
About this lesson
This lesson covers eight key areas: types of standards (ideal, current, basic, and expected), fixed and flexible budgets, responsibility accounting, and how to calculate and interpret material, labour, and sales variances. You'll see how standards support planning and control decisions, with a worked example showing how to combine standard quantities and prices to determine the total standard cost per unit. This is essential knowledge for PM, APM, and SBL papers, where variance analysis is a core exam skill.
Duration: 3m
Transcript
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