1.0 Introduction This report is written to a manager of XL Private Limited to give more concentration of information on how to expand upon the area of standard costing and variance analysis. By reading this report will definitely get an idea to how business can improve. I have mentioned all the important topics that need to concentrate on the areas of standard costing and variance analysis. 2.0 The advantages and disadvantages of using a system of standard costing and variance analysis Standard costing is a very essential managerial instrument for cost control. The advantages of standard costing are that standard costing involves a great deal of introductory work for set standards but once standards have been established the clerical work …show more content…
Labor rate variance is the amount of difference amongst the actual cost of direct labor and the standard cost of direct labor used throughout a period, and the labor efficiency variance is the amount of difference amongst the standard cost of actual figure of direct labor hours used throughout a period and the standard times of direct labor for the level of production …show more content…
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