PLEASE ASAP

In Chapter 10, we learned about standard costing. Basically, standard costing is budgeting on a micro level. Instead of budgeting in total, we budget per unit. Standard costing is the starting point for manufacturing companies when it comes to budgeting. The determine standard costs per unit, then use those to determine total production budgets based on predicted number of units produced. One nice benefit to standard costing is that it allows companies to scrutinize costs and processes to determine if the company is operating efficiently. For example, when determining standard quantity of materials per unit, maybe we realize that our current manufacturing process creates a lot of waste in scrap materials and thus our per unit cost of materials is higher than our competitors (which hurts our profitability). It would be interesting to apply the standard costing concepts we learned in this chapter to some of the costs in our everyday lives. For example, when we grocery shop every week the amount of food we buy could be our standard quantity. If we analyze how much of the food we buy that we actually eat vs throw away, we can determine if we are being efficient with our standard quantity. If we realize we throw away 20% of the food we buy, there is a great deal of cost saving potential if we change our standard quantity to allow for less food waste. Another example would be a standard price for our cable/satellite bill. Maybe you could scrutinize what channels you watch and can find a less expensive plan if you cut out channels you don't watch.

Directions

Be sure to read all directions prior to engaging with this activity.

1. For this discussion board, I would like you to think about some standard costs in your lives. State the standard cost and how you might improve on the standard to help save costs. State at least 3 different standard costs.
2. Use the 'reply' arrow below to start your initial post.
3. In your initial post, I would expect at least a 200 word response.