Standard costing

Worked examples (10)

• 1What is a standard cost? (3 marks)
• 2Standard material cost (3 marks)
• 3Standard labour cost (3 marks)
• 4Standard cost per unit (5 marks)
• 5Ideal or attainable? (4 marks)
• 6Why ideal standards demotivate (4 marks)
• 7Purpose of standard costing (4 marks)
• 8When standard costing suits (4 marks)
• 9Two standards per element (4 marks)
• 10Keeping standards up to date (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style

Worked examples (10)

• 1Material price variance (4 marks)
• 2Material usage variance (4 marks)
• 3Total material variance (4 marks)
• 4Labour rate variance (4 marks)
• 5Labour efficiency variance (4 marks)
• 6Sales price variance (4 marks)
• 7Sales volume variance (5 marks)
• 8Fixed overhead expenditure variance (4 marks)
• 9Suggest a cause (4 marks)
• 10Favourable or adverse? (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style

Worked examples (10)

• 1Two advantages (4 marks)
• 2Two disadvantages (4 marks)
• 3Management by exception (4 marks)
• 4Out-of-date standards (4 marks)
• 5Dysfunctional behaviour (4 marks)
• 6Variances are interdependent (4 marks)
• 7Standards and motivation (4 marks)
• 8When standard costing is worthwhile (4 marks)
• 9Participation in setting standards (4 marks)
• 10Advise on adopting standard costing (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style

Worked examples (10)

• 1Purpose of the operating statement (4 marks)
• 2Add or deduct? (3 marks)
• 3Net the variances (4 marks)
• 4Find the actual profit (4 marks)
• 5Prepare the operating statement (6 marks)
• 6Find a missing variance (5 marks)
• 7Watch the starting point (4 marks)
• 8Interpret the statement (5 marks)
• 9Controllable vs uncontrollable (4 marks)
• 10The built-in check (3 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style