Variance analysis covering meaning and introduction to variance, controllable and uncontrollable variances, classification of variances (cost and sales), direct material cost variance (price, usage, mix, yield), direct labor cost variance (rate, efficiency, mix, yield), overhead cost variance (variable, fixed).
Standard costing fundamentals covering introduction to standard costing, meaning of standard, types of standards (basic, ideal, expected, normal), standard cost definitions, comparison with estimated cost, standard costing concept, objectives, budgeting differences, determining standard costs for material, labor, overheads.
Standard cost and standard costing covering meaning of standard, types of standards (basic, ideal, expected, normal), definitions of standard cost, difference between standard cost and estimated cost, concept of standard costing, objectives, difference from budgeting, methods of determining standard cost.
Decision making under marginal costing covering exploring new markets, make or buy decisions, sales mix decisions, key factor analysis, product mix optimization, contribution analysis for managerial decisions.
Marginal costing and absorption costing covering meaning, basic features, income statement preparation under both methods, direct costing, differential costing, comparison of marginal and absorption costing techniques.