Select certain types of commodities for an increased review schedule, and leave the majority of items on the usual annual review cycle. However, this can result in a great deal of additional staff review time. ![]() From a procedural perspective, it is easy enough to simply schedule a complete review of all costs semi-annually or once a quarter. In these cases, you can either update costs on a more frequent schedule or in response to a triggering event. However, there are cases where actual costs fluctuate considerably over time, resulting in large positive or negative variances. In a standard costing system, most companies go through a cost updating process once a year, in order to bring standard costs more closely in alignment with actual costs.
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