In this Video We Will Discuss Standard Costing Complete Chapter all Concepts, Problems and Examples for CA Intermediate and CA Intermediate Cost and Management Accounting Chapter no 13 has been Discussed by Chandan Poddar Sir for CA Intermediate Grooming Education.https://www.escholars.in/s/store/courses/description/CA-Inter-Online-Classes:- https://www.escholars.in/s/store/courses/description/CA-Inter-June-2020: - https://www.escholars.in/s/store/courses/description/CA-Inter---Group-1-100-Success-Pack-May-2020:- https://www.escholars.in/s/store/courses/description/CA-Inter---Group-2-100-Success-Pack-May-2020/:- https://www.escholars.in/s/store/courses/description/Test-Series--CA-Intermediate-Group-1/:- https://www.escholars.in/s/store/courses/description/Test-Series--CA-Intermediate-Group-2 Watch Next: Contract Costing Chapter in Single Video https://youtu.be/kbFedJHpTpg Labour Costing Chapter in Single Video https://youtu.be/GGjREa-oGAI Material Costing Chapter in Single Video https://youtu.be/woEvuREKRy8 Standard costing is the practise of substituting an expected cost for an actual cost in the accounting records. Subsequently, variances are recorded to show the difference between the expected and actual costs. This approach represents a simplified alternative to cost layering systems, such as the FIFO and LIFO methods, where large amounts of historical cost information must be maintained for inventory items held in stock. Standard costing involves the creation of estimated (i.e., standard) costs for some or all activities within a company. The core reason for using standard costs is that there are a number of applications where it is too time-consuming to collect actual costs, so standard costs are used as a close approximation to actual costs. Advantages of Standard Costing Though most companies do not use standard costing in its original application of calculating the cost of ending inventory, it is still useful for a number of other applications. In most cases, users are probably not even aware that they are using standard costing, only that they are using an approximation of actual costs. Here are some potential uses: • Budgeting. A budget is always composed of standard costs, since it would be impossible to include in it the exact actual cost of an item on the day the budget is finalized. Also, since a key application of the budget is to compare it to actual results in subsequent periods, the standards used within it continue to appear in financial reports through the budget period. • Inventory costing. It is extremely easy to print a report showing the period-end inventory balances (if you are using a perpetual inventory system), multiply it by the standard cost of each item, and instantly generate an ending inventory valuation. The result does not exactly match the actual cost of inventory, but it is close. However, it may be necessary to update standard costs frequently, if actual costs are continually changing. It is easiest to update costs for the highest-dollar components of inventory on a frequent basis, and leave lower-value items for occasional cost reviews. • Overhead application. If it takes too long to aggregate actual costs into cost pools for allocation to inventory, then you may use a standard overhead application rate instead, and adjust this rate every few months to keep it close to actual costs. Problems with Standard Costing CA Intermediate: Grooming education academy is engaged in providing qualitative commerce education to society at concessional prices. We believe in Research, reasoning and result and thus our learners admit our USP of: "Pioneer in developing concepts". We provide the complete tutorials for CA Intermediate. To know about the courses and books that best suits your requirement call at our helpline number:to know more about the courses available: https://www.escholars.in/for getting latest updates regarding new courses and Video Updates: http://tiny.cc/w02t7y (Available on Google Play Store and App Store as Well)::: https://t.me/CAIntermediateGrooming: https://www.facebook.com/GroomingEducationAcademy/: https://www.instagram.com/groomingeducationacademy/?hl=en: https://twitter.com/AcademyGrooming: https://www.linkedin.com/company/grooming-education-academy: https://www.pinterest.de/groomingeducation/ #CAIntermediate #CostAccounting #StandardCosting #ChandanPoddar #Costing #Cost&Mangement