In previous articles we’ve considered how it can be used to help plan production when resources are limited. Standard costing is used in all stages of the budgetary process planning, decision making, monitoring and control. In other words, it focuses on the cost of what the business produces, as opposed to the costs of the business’s sections or departments.
It’s distinct from general budget setting because it focuses on cost units. Standard costing is used by lots of manufacturing organisations to calculate the expected costs of products. Budgeting with Standard Costing Series (AAT Professional Diploma)
