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.
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- Payment date
On the payment date the company mails dividend checks to the stockholders and records the payment to the dividend.
- Income Statement
Income statement is a financial statement that reflects the results of the operations of a firm over a specified period of time; prepared on a monthly, quarterly, or annual basis.
- Contribution margin
Contribution margin is the amount of revenue remaining after deducting variable costs. It is often stated both as a total amount and on a per unit basis.
- Factoring company
Factoring company is a firm that buys a business open-book accounts for sometimes consumer credit accounts) and customarily absorbs all losses if the debtors do not pay.
- Consigned goods
Consigned goods referred as goods that held for sale by one party (the consignee) although ownership of the goods is retained by another party (the consignor).
- Selling and administrative expense budget
Selling and administrative expense budget is a projection of anticipated selling and administrative expenses for the budget period.
- Total manufacturing costs
Total manufacturing costs refer to the sum of direct materials, direct labor, and manufacturing overhead incurred in the current period.