Standard Costs and Variance Analysis

Standard costs are commonly used in many accounting applications. In the Standard Costs and Variance Analysis manual, we address the situations in which standard costing can be used, its advantages and disadvantages, and how to create a standard cost. We also cover the various types of variances that can be derived from standard costs, including materials, labor, and overhead variances. Finally, we address which variances should be reported, and how to report them to management.