Perform Standard costing, variance analysis for coca-cola company.
This is used in collaboration with other cost accounting systems like job order costing or process order costing. This is an analysis tool used for evaluation. In this costing, estimated costs that are based on the predetermined costs are used even if the actual costs are not available. Then these costs are later on adjusted to reflect the actual cost incurred. Standard costing consists of three parts-
1).   Measure of  actual performance
2).   The standard cost to get a standard or predetermined performance level
3).   A measure of the variance between the two, i.e., the variance between standard and actual
This is applicable for all components of products, which are direct labor, direct material cost, and overhead cost. The main difference between manufacturing and service organizations while using standard costing is that service organizations do not have direct material costs. After this comes variance analysis wherein the difference is observed and then the reasons for the same are found out. We can classify variance into two- sales variance and cost variance. This variance can be favorable or unfavorable. When the actual exceed standards, it is favorable, and if the actual is less than standards then unfavorable. (Standard Costing and Variance Analysis, Standard Costing System, 2020).