Discuss Standard Costing

question 33

Essay

Discuss standard costing.As part of your discussion,define a standard cost.In addition,compare and contrast standard costs and predetermined overhead costs.Include in your discussion at least three reasons why standard costs are introduced into a standard cost accounting system.How is a standard cost accounting system useful to management?

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Definitions:

Wage Survey Data

Information collected on wage rates for various jobs within an industry or region, used to compare and set competitive salaries.

Internal Equity

A pay strategy ensuring fairness in employees' wages within the same organization, based on job value and employee contribution.

External Equity

A principle in compensation management that ensures an organization's pay rates are competitive with those in the external labor market.

Hay Profile Method

A job evaluation technique that assesses roles based on knowledge, problem solving, accountability, and working conditions to determine pay scales.