Dss the difference between budgets and standard costs Dss the difference between budgets and standard costs 1. Discuss the difference between budgets and standard costs. Describe the relationship that unit standards have with flexible budgeting. Why is historical experience often a poor basis for establishing standards?
The research methodological analysis used in this survey was a study questionnaire sent to executives of the industry. In entire, useable completed questionnaires were received and analyzed. Unlike old eventuality theory surveies, this survey investigated the relationship between the development of direction accounting patterns and explanatory factors such as external, organisational and processing factors.
Variables studied were a the usage and importance of direction accounting patterns ; bing systems, budgeting, public presentation rating, information Differences between standard costing and kaizen costing determination devising, strategic analysis and communicating of direction accounting information.
The answering houses were classified into direction accounting development phases in order to research the edification of current patterns and to analyze whether there are relationships between their edification and possible explanatory factors. This was done on the footing of their accent on certain patterns and so associating those direction accounting patterns to the phases of direction accounting development IFAC, Finally, the survey sought to understand the consequence of explanatory factors e.
The survey found that as companies moved into a more unsure environment, the edification degree of direction accounting patterns increased. Analysis of the direction accounting patterns used suggested that the direction accounting systems employed in many nutrient and drinks companies were non peculiarly sophisticated.
The aim of their survey was to capture the development in cost direction patterns such as accounting for operating expenses, applications of budgetary control and standard costing in corporate India.
The study questionnaire besides aimed to verify any important difference in direction motive for the execution and usage of standard costing as a control tool between activity based cost direction ABCM user houses and houses utilizing traditional bing systems.
This survey besides sought elucidation about whether houses utilizing ABCM were more likely to hold a: The questionnaire was sent to CFOs of private sector companies. Despite two reminders and confidences that merely aggregative consequences will be published, merely 53 companies chose to react.
The response rate was about 8. This rate was low in comparing to another longitudinal survey of companies conducted by Joshi which elicited a response rate of Five point Likert graduated table was used to estimate success achieved in the application of present bing systems to capture a accurate cost information with regard to merchandise pricing, stock list rating, value concatenation analysis, supply concatenation analysis and outsourcing determinations ; B accurate net income analysis by merchandise, by procedure, by section and by client ; degree Celsius better penetration for benchmarking and budgeting and vitamin D better penetration about fabricating public presentation.
The consequences showed that houses which have adopted ABC were significantly more successful in capturing accurate cost information for value concatenation analysis and supply concatenation analysis vis-a-vis the houses which had non adopted ABC. No important difference was found in the usage of standard costing among ABC user houses and non users.
The size of the company was based on entire assets. A sum of Nipponese companies and Australian companies responded to the 31 inquiries asked covering assorted facets of managerial accounting techniques.
This analysis involved comparings of techniques in different cultural contexts. Major cultural differences identified in the survey were corporate determination devising, alone company doctrine, use of little houses as bomber contractors, company specific cost accounting preparation for each employee, and the difference in educational background of direction comptrollers as seen in Japan compared to Australia.
Based on responses, the profile e. Other variables explored were ; importance of direction accounting tools, utilizations of cost accounting informations, intents of standard costing, investing assessment methods, constituents of budgets, timings of budget, chief overhead allotment bases, fabricating cost construction, stock lists as a per centum of entire assets, quantitative techniques, public presentation rating steps, merchandise bing methods, major participants in new merchandise cost appraisal, bing systems and important alterations to bing systems.
Mean and coefficient of fluctuation were computed aboard ranking of studied variables for informations analysis methodological analysis.
The responses to these inquiries were than ranked in conformity with the coefficient of fluctuations. Statistical significance of differences between Australian and Nipponese responses was examined by the Kruskal-Wallis non parametric analysis of discrepancies.
Other inquiries which intended to arouse factual responses were analyzed in footings of per centums. Findingss of the comparative study revealed that direction accounting patterns of Australian companies placed accent on cost control tools e.
Another notable difference that emanated from the study was that activity-based costing ABC appeared to be popular among Australian companies while it was seldom used in Nipponese companies.
Despite the reduced labour constituent in the fabrication cost construction, fabricating companies in both states seemed to apportion mill overhead chiefly on the footing of direct labour.
Inventory degrees were significantly lower in Nipponese companies for finished goods and natural stuffs in comparing to Australian companies.
Liaqat carried out an empirical survey to happen out the application of modern-day direction accounting techniques in Indian industry through a study of member companies of the National Association of Financial Directors and Cost Controllers. A five point Likert graduated table was used.
The focal point of the survey was to happen grounds on how widely traditional and modern-day direction accounting patterns were adopted by Indian industry.
The probes revealed that betterment of overall profitableness and cost decrease were the motivation factors for utilizing direction accounting in Indian companies.
The research worker found a positive association between the acceptance of ABC and company features e. They besides studied the relationship between merchandise assortment, complexness of production procedure, degree of competition, company size, overhead disbursals and use of advanced direction accounting patterns.However, the most common techniques in manufacturing companies include Just in Time (JIT), Activity Based Costing (ABC), Target Costing, Life Cycle Costing, Throughput Accounting and Kaizen costing while Activity Based Costing is the most commonly used technique in Service sector.
• Variance analysis is the process of computing the differences between standard costs and actual costs and identifying the causes of those differences. Chapter 16 Standard costing variance analysis kaizen costing Standards Predetermined amount for what should happen Quantity standard Quantity of the resource that.
Statistical significance of differences between Australian and Nipponese responses was examined by the Kruskal-Wallis non parametric analysis of discrepancies. Activity-Based Management, Target Costing, Kaizen Costing, Value Added Accounting, Cost of Quality, Economic Value Added, Life Cycle Costing, Target Cost Question No.
4 is. Kaizen costing, then, operates outside of the standard costing system, in part because standard costing systems in Japan are oriented towards complying with financial accounting standards. Another key difference between standard and Kaizen costing has to do with the assumptions about who has the best knowledge to improve processes and reduce costs%(13).
Life Cycle Costing Process: LCC Analysis is a multi-disciplinary activity. An analyst, involved in life cycle costing, should be fully familiar with unique cost elements involved in the life cycle of asset, sources of cost data to be collected and financial principles to be applied.
Kaizen costing is a Japanese concept focused on obtaining small incremental cost reductions during the production stage of the Product Life Cycle using principles such as Value Analysis and.