perspective of cost control and cost ascertainment.

This standard is set on

a long‐term premise and only from time to time amended.

It is a fundamental norm from which current standard can bedeveloped.

‐ I.C.M.A.

4) Setting the Norm: The method involved with setting standard is an important action in

itself. The achievement of standard costing framework relies upon the dependability,

precision and acknowledgment of the guidelines. In the event that guidelines have been
appropriately

set and kept up with, they are a sound reason for deciding expense for different

purposes. While setting the principles, the accompanying focuses ought to be taken

into thought: term of utilization of standard, sensible norm of

execution, level of movement. For the given units standard sets for the

following things are (I) direct material expense, (ii) direct pay cost,(iii) direct
expense,(iv) production line variable overhead cost,(v) selling and appropriation