Question

Standard cost variance reports are usually prepared every month and often are released days or even weeks after the end of the month. As a consequence, the information in the reports may be very outdated. Timely, frequent reports that are approximately correct are better than infrequent reports that are very precise but out of date by the time they are released. Some companies are now reporting variances and other key operating data daily or even more frequently.

Given the statement above, is it possible to implement standard costs variance analysis and job-order costing at the same time? Please specify how it would work out.

Answer 1

Answer

Yes, it is possible. Standards costs are calculated on per unit and compared with actual per unit performance while job order costing. Software should be modified to track the two at same time.