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Methods of Costing

WORK STUDY MATERIAL CONTROL STANDARD COSTING BUDGETARY CONTROL  DEFINITION Work study is defined as that body of knowledge concerned with the analysis of the work methods and the equipments used in performing a job, the design of an optimum work method and the standardisation of proposed work methods.  To  To analyse the job measure the work content of the job  To increase productivity  To improve operational efficiency  Increased productivity  Improved work flow  Fair wages

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Balaji
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128 views

Methods of Costing

WORK STUDY MATERIAL CONTROL STANDARD COSTING BUDGETARY CONTROL  DEFINITION Work study is defined as that body of knowledge concerned with the analysis of the work methods and the equipments used in performing a job, the design of an optimum work method and the standardisation of proposed work methods.  To  To analyse the job measure the work content of the job  To increase productivity  To improve operational efficiency  Increased productivity  Improved work flow  Fair wages

Uploaded by

Balaji
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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WORK STUDY

MATERIAL CONTROL
STANDARD COSTING
BUDGETARY CONTROL
 DEFINITION
Work study is defined as that body of
knowledge concerned with the
analysis of the work methods and
the equipments used in performing a
job, the design of an optimum work
method and the standardisation of
proposed work methods.
 To analyse the job
 To measure the work content of the
job
 To increase productivity
 To improve operational efficiency
 Increased productivity
 Improved work flow
 Fair wages to emplyees
 Better working condition to
employees
 Reduced material handling cost
 Reduced manufacturing cost
 Itis a systematic control over the
purchasing, storing , and using of
materials so as to have the minimum
possible cost of material.
 Availability of material
 No excessive investment in materials
 Reasonable price
 Minimum wastage
 No risk of spoilage and obsolescence
 Ready information about availability of
materials
 Misappropriation of materials
 Right amount of payment to suppliers
 Itis the preparation of standard
costs and applying them to measure
variations from actual costs and
analyzing the causes of variations
with a view to maintain maximum
efficiency in production . It is a
technique which uses standards for
costs and revenues for the purpose
of control through variance analysis.
 Itis one of the tool to the
management in controlling the costs.
 Budgetory control can be prepared
on the basis of past figures adjusted
to future trends.
 Standards are based on technical
assessments whereas budgets are based
on past actual adjisted to future trends.
 Budgetary control deals with the
operations of a department of business as
a whole while standard costing is applied
to manufacturing of a product, process or
providing service.
 Budgetary control is extensive whereas
standard costing is intensive.
 Inbudgetary control , variances are
not revealed through the accounts
but are revealed in total. But in
standard costing , variances are
analysed in detail according to their
originating causes. Thus standard
costing reveals variances through
different accounts.
 Bothstandard costing and budgetary
control are complimentary to each
other and for maximum efficiency
both should be used simultaneously .
Both may prove more effective if
they are used in conjunction to each
other.
THANK YOU

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