The-definition.com

Definition

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

  • Capital profits
    Capital profits are those profits which are not earned during the regular course of business ...
  • Manual accounting system
    Manual accounting system is a system in which someone performs each of the steps in the ...
  • Current replacement cost
    Current replacement cost means the current cost to replace an inventory item. Companies ...
  • Capital Funding
    Capital Funding is the monetary resources provided to the business that can assist in ...
  • Worksheet
    A worksheet is a multiple-column form that companies use in the adjustment process and ...