Standard Costing

Features Includes:
  • Self-paced with Life Time Access
  • Certificate on Completion
  • Access on Android and iOS App

Course Preview Video


This course comprises 4 1/2 hours of teaching on Standard cost variances, the reconciliation of statements and ledger accounts.

There are 6 videos in total of approximately 45 minutes each.

The primary objective of this course is to educate you for life and for your future career as an Accountant who understands how to maximise company profits. The secondary objective is to teach you in a manner that helps you to pass examinations.

  • Video 1   -  Standard costing overview

This video will teach you the fundamentals of Standard costing - why variances are calculated and the objective of reconciling the Budget profit to the actual profit. It will also introduce you to the ledger accounts that are required for a fully integrated Standard costing system.

  • Video 2   -  Material variances

Here you will learn how to calculate all the relevant material variances and how to reconcile Budget cost to Actual cost.

  • Video 3   -   Labour and Variable cost variances

As per Material - variances plus reconciliation.

  • Video 4   -   Fixed cost variances

You will learn the difference between variable and absorption costing systems, the variances for each one and the reconciliation of Budget to Actual.

  • Video 5   -  Sales variances

Sales variances are analysed by value and by profit plus the reconciliation of Budget profit to Standard profit to Actual profit

  • Video 6   -   Tutorial questions

In this session I will teach you how to read a question and how to answer a Standard costing question.

Basic knowledge
  • Students should have a basic Financial Accounting standard at the first year level. Basis knowledge of ledger accounts, Balance sheet and Income Statement is required
  • With regard to Managerial Accounting - no prior knowledge is required. This course takes students from a zero knowledge base to an Advanced level

What will you learn
  • Material variance calculations - Material price, mix, yield and Usage variance
  • Labour variances - Rate, efficiency and capacity usage
  • Variable cost variances - Expenditure and efficiency
  • Fixed cost variances - Variable cost expenditure. Absorption costing Expenditure and Volume variances
  • Sales variances - Price, volume, Quantity and Mix

You will also learn how to enter the variances in the ledger accounts and how to reconcile the Budget cost to Actual cost.

Reconciliation of Budget profit to Standard profit - to Actual profit is taught in detail.

Course Curriculum
Number of Lectures: 6 Total Duration: 04:23:03

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