Cost Accounting using Standard Costing & Flexible Budget

Name: Cost Accounting using Standard Costing & Flexible Budget
Rating: 4.5 (6 reviews)

Tools of Cost Accounting-Standard Costing & Flexible Budget

Created byDr.Himanshu Saxena

Last updated 10/2020

English

What you'll learn

Cost Accounting Techniques
Mechanism of Material Variance & Labour Variance
Construction of Flexible Budget
Solving Case Studies in Cost Accouting using Flexible Budget

Course content

5 sections • 17 lectures • 4h 22m total length

Introduction9:54
Plan and control costs using standard costing by comparing predetermined standard costs to actual costs, analyzing variances, and implementing corrective actions to improve efficiency and performance.

Material Variance-I7:03
Apply standard costing to compute material cost variance, material price variance, and material usage variance using standard price, standard quantity, actual price, and actual quantity in practical problems.
Material Variance-II8:01
Material Variance-III9:55
Explore material variances in standard costing and flexible budgeting, calculating price and usage variances from opening and closing stock data, standard versus actual quantity, and unit costs.
Material Mix Variance7:54
Explore material mix variance in cost accounting by applying revised standard quantity, standard quantity, actual quantity, and standard price to analyze deviations.
Material Mix Variance-II6:09

Labour Variance-I15:38
Apply standard costing and flexible budgeting to calculate labor cost and analyze labor variance, using actual hours, standard time, and efficiency as guiding metrics.
Labour Variance-II14:56
Explore labor variance by analyzing the gap between standard and actual labor cost, emphasizing labor efficiency, standard hours, and favorable or unfavorable outcomes.
Labour Variance-III23:04
Analyze labor efficiency variance under standard costing, comparing actual hours to standard hours and calculating the impact on total labor cost within a flexible budgeting framework.
Labour Variance-III26:50

Introduction10:18
The lecture defines the flexible budget, separates fixed, variable, and semi-variable costs, and demonstrates how budgets adapt to different activity levels and capacities within the relevant range.
Flexible Budget-I @ 50% & 75% capacity20:49
Flexible Budget-II @ 60% & 90% capacity24:03
Analyze how a flexible budget adapts to 60% and 90% capacity by separating fixed and variable expenses, including administrative, maintenance, and depreciation costs, to forecast profit.
Flexible Budget-III @ 75% & 100% capacity19:48
Compare flexible budgets at 75% and 100% capacity, analyzing how fixed and variable expenses, salaries, and maintenance drive profits under different capacities.

Flexible Budget for 6000 units & 10,000 units20:49
Explore how a flexible budget handles the production of 6000 and 10000 units, outlining fixed versus variable costs, and selling expenses, distribution expenses, and production cost per unit.
Flexible Budget @ 80%, 90% and 100% level of activity and calculation of Rate/hr17:26
Flexible Budget by identifying Fixed, Variable & Semi Varaiable Costs20:18
Explore how fixed, variable, and semi-variable costs behave under a flexible budget, using capacity scenarios to analyze cost changes as volume fluctuates.

Requirements

Description

This course helps in understanding the important Tools of Cost Accounting- Standard Costing & Flexible Budget

Standard costing tells us what should be the cost of the product and if the actual cost exceeds the projected cost, the standard costing system can point to the reason of deviation.

Salient Features of Standard Costing

· Standard costing includes pre-determination of costs under specific working conditions.

· In this process, the standard quantity of machine time, labor time, and material is calculated and the future market trend for price standards is analyzed.

· Standard costing helps in variance analysis.

· Along with fixation of sale price, it also provides valuation of stock and work in progress.

· Material, labor, and overheads cost are ascertained.

· Actual cost is measured.

Flexible budget provides logical comparison. The actual cost at the actual activity is compared with the budgeted cost at the time of preparing a flexible budget. Flexibility recognizes the concept of variability.

Flexible budget helps in assessing the performance of departments in relation to the activity level achieved. Cost ascertainment is possible at different levels of activities. It is also useful in fixation of price and preparation of quotations.

Flexible Budget is useful in:

the new organizations where it is difficult to foresee,
the firms where activity level changes due to seasonal nature or change in demand,
the industries based on change of fashion,
the units which keep on introducing new products, and
the firms which are engaged in ship-building business.

Who this course is for:

MBA, MCA, BBA, BCA students, Research Scholars, XI, XII Class Commerce Students, Commerce and Management Graduates

Cost Accounting using Standard Costing & Flexible Budget

What you'll learn

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Course content

Introduction1 lecture • 10min

Material Variance5 lectures • 39min

Labour Variance4 lectures • 1hr 20min

Flexible Budget4 lectures • 1hr 15min

Flexible Budget-II3 lectures • 59min

Requirements

Description

Who this course is for: