PRESENTATION

ON
STANDARD COSTING
Prepared By:Naveen Bhatt
MBA(Finance & Marketing)
Graphic Era University

About Tupperware
Tupperware is the name of a home products line that includes preparation, storage,
containment, and serving products for the kitchen and home. In 1942, Earl Tupper developed
his first bell shaped container; the brand products were introduced to the public in 1948.
Tupperware develops, manufactures, and internationally distributes its products as a wholly
owned subsidiary of its parent company Tupperware Brands. It is marketed by means of
approximately 1.9 million direct salespeople on contract.
In 2013, the top marketplace of Tupperware was Indonesia which toppled Germany as the
second. Indonesia's last year sales were more than $200 million with 250,000 sales persons.

Tupperware History
Tupperware was developed in 1946 by Earl Silas Tupper. He
developed plastic containers used in households to contain
food and keep it airtight. Earl Tupper invented the plastic for
Tupperware already in 1938, but the product only worked with
the emergence of the sale through presentation in a party
setting. In 1949, Tupperware introduced the 'Wonderlier Bowl'
that gave a start to a revolutionary range of kitchen utensils.

Standard Costing
Standard costing is a technique of cost
accounting which compares the standard
cost of each product or service with the
actual costs, to determine the efficiency
of the operations so that any remedial
action may be taken immediately.

Standard Cost
A standard cost is a planned cost for a
unit of product or service rendered.
Standard costs represent excellent target
costs that should be obtained.

Steps in Standard Costing

Contd
1. Set the standard cost: A standard quantity is predetermined and standard
price per unit is estimated.
Budgeted cost is calculated by using standard cost.
2. Record the actual cost: Calculate actual quantity and cost incurred giving full
details.
3. Variance Analysis: Comparison of the actual cost with the budgeted cost.
The cost variance is used in controlling cost.

Advantages of Standard Costing

Effective cost control: The most important advantage of standard costing is that
it facilities the control of costs.

Control is exercised by comparing actual

performance with standards and taking action on the basis of variances so

revealed.
Help in planning: Establishing standards is a very useful exercise in business
planning with instills in the managements a habit of thinking in advance.
Provides incentives: The standards provide incentives and motivate to work with
greater effort. Schemes may be formulated to reward those who achieve or
surpass the standard. This increases efficiency and productivity.

Disadvantages of Standard Costing

The system may not be appropriate to the business.
The staff may not be capable of operating the system.
Inaccurate and unreliable standards cause misleading
results.
Too comprehensive hence time-consuming.
Focus on cost minimization rather than quality or
innovation.

Uses of Standard Costing

Standard costing is for improving cost /cost control,
simplify stock valuation and improving costing and
pricing of products.
It provides the best basis for estimating future cost
and contribute to the planning/budgeting function.
It assist in the comparison of the actual with the
planned to evaluate managerial performance.

Contd
Can be applied to:Jobs,
Operations,
Processes,
Department and;
are used in manufacturing, engineering, processing and
service industries.

Tupperware Costing

MOLDING

MACHINE
HOURS

PACKING

MAN
HOURS

For costing we need:

Materials. (Raw-Material)

Colorants. (Masterbatch)
Packing Materials.

THANK YOU