$($Total $=10$ Marks$)$Question $4.$

Standard Costing is a tool for Management Control and Performance Management. It is part of the feedback cycle used to track progress, sustain motivation and effort and flag problems for attention of management. The problems and discrepancies are investigated to find their root causes for remedial actions to improve operations. Variances Analysis provides pointers to off$-$standard performance. Variances should be analyzed in sufficient details to enable assignment of responsibility to a particular individual.

Required

a$.$ Explain the difference between standard and budget $2$ Marks

b$.$ State four objectives of Standard Costing

$2$ Marks

c$.$ Give possible causes of Material variances

$2$ Marks

d$.$ Discuss Variance Analysis cycle

$4$ Marks

$(10$ Marks$)$