Types of Costs Used in Transfer Pricing Derivations
When creating a transfer price based on any type of cost, one should carefully consider the types of cost that are used to develop the …
Posts tagged Standard Cost
How To Develop A Standard Cost System
Although standard cost systems were initiated by manufacturing companies, these systems can also be used by service and not-for-profit organizations. In a standard cost system, …
How To Measure The Performance Of A Cost Center?
One of the most important phases of “responsibility accounting“ is establishing “standard costs“ and evaluating performance by comparing “actual costs“ with the “standard costs“. The …
The Use of Standard Cost And Variance Analysis
A standard cost is a predetermined cost of manufacturing, servicing, or marketing an item during a given future period. It is based on current and …
Profitability analysis: BEP, Price Reduction, Outsourcing Opportunities
Following on my previous post about “Business Profitability Analysis”, now I am going to talk about the calculation and its analysis part, I am coming …