X.+Conclusions


 * Price standards = a predetermined price for a good or service, based on historical price and other costs
 * Quantity standards = the number of inputs allowed per unit of output
 * Unit Standard Cost = Standard Price x Standard Quantity
 * Can be classified as:
 * 1) Ideal Standards
 * 2) Currently Attainable Standards
 * 3) Kaizen Standards
 * Three reasons to use a standard costing system:
 * 1) Cost Management
 * 2) Planning and Controlling
 * 3) Decision Making and Product Costing
 * Standard cost sheet = a list of costs that should be applied to per unit of output
 * Direct labor rate variance = what has been paid and what should have been paid to direct labors
 * __Direct Labor Rate Variance:__ LRV = (AR x AH) - (SR x AH)
 * __Direct Labor Efficiency Variance:__ LEV = (AH x SR) - (SH x SR)
 * Direct material price variance = difference from actual material cost and direct material that was budgeted
 * __Direct Material Price Variance:__ MPV = (AP x AQ) - (SP x AQ)
 * __Direct Material Usage Variance:__ MUV = (SP x AQ) - (SP x SQ)
 * Total Budget Variance = (Actual Price x Actual Quantity) - (Standard Price x Standard Quantity)
 * Mix variance = when actual costs are different than the standard costs
 * Mix Variance = E (AQi - SMi) SPi
 * Yield variance = standard cost for standard yield less actual cost for actual yield
 * Yield Variance = (Standard yield - Actual yield)SPy