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  • MGT Acc

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    Shahriar Zaman
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    Standard quantity and price per unit of direct materials are established to account for normal inefficiencies and costs associated with the materials. Management by exception involves setting standards, comparing actual results to the standards, and reporting any significant differences or "exceptions" to management.

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    mgt acc

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    Standard quantity and price per unit of direct materials are established to account for normal inefficiencies and costs associated with the materials. Management by exception involves setting standards, comparing actual results to the standards, and reporting any significant differences or "exceptions" to management.

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    10 views1 page

    MGT Acc

    Uploaded by

    Shahriar Zaman
    Standard quantity and price per unit of direct materials are established to account for normal inefficiencies and costs associated with the materials. Management by exception involves setting standards, comparing actual results to the standards, and reporting any significant differences or "exceptions" to management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    Quantity standards: Standard quantity per unit of direct materials is the amount of

    direct materials or raw materials that should be required to complete a single unit of product, including allowances for normal waste, spoilage, rejects, and similar inefficiencies.

    Price standards: Standard price per unit of direct materials is the price that should be paid for a single unit of materials, including allowances for quality, quantity purchased, shipping, receiving, and other such costs, net of any discounts allowed.

    5.the variance is a measure of how far a set of numbers is spread out. It is one of several descriptors of a probability distribution, describing how far the numbers lie from the mean (expected value). In particular, the variance is one of the moments of a distribution. In that context, it forms part of a systematic approach to distinguishing between probability distributions.

    6.Management by exception is a system of management in which standards are set for various operating activities, with actual results then compared to these standards. Any differences that are deemed significant are brought to the attention of management as "exceptions."

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