The
Definition Of

Standard Cost Accounting System

A standard cost accounting system is a double-entry system of accounting. In this system, companies use standard costs in making entries, and they formally recognize variances in accounts. Companies may use a standard cost system with either job order or process costing.

In standard cost accounting system, companies journalize and post standard cost, and they maintain separate variance accounts in the ledger.

Share it:  Cite

More from this Section

  • Budgeted Balance Sheet
    The budgeted balance sheet is a projection of financial position at the end of the budget ...
  • Physical units
    Physical units are the actual units to be accounted for during a period, irrespective ...
  • Capital profits
    Capital profits are those profits which are not earned during the regular course of business ...
  • Return on investment (ROI)
    The primary basis for evaluating the performance of a manager of an investment center ...
  • Materials quantity variance
    Materials quantity variance is the difference between the actual quantity times the standard ...