Variances provide means of performance evaluation and


Could you explain and give the example to me the advantages of standard costing fllowing 3 ideas

1. Computation of standard costs and cost variance enables manager to employ management by exception.

2. Variances provide means of performance evaluation and provide motivation for employees.

3. Use of standard costs in product costing result in more stable product costs than if actual production cost are used.

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Accounting Basics: Variances provide means of performance evaluation and
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