Die korrelasie tussen standaardkoste en standaardtyd in fabriek A : 'n gevalle studie
Kotze, Frederik Christoffel
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Industrial growth and economic prosperity are ensured by continuity and earning of profits, which in turn should form the fundamental object of the management of any concern. In order to fulfil this function efficiently, management should operate on a pure and accurate cost price ensuring sound policy decisions concerning aspects such as investment and production. Factory A, a large engineering industry, encounters all those variable factors which complicate the compilation and analysis of costing data. As a result of the nature and composition of production and the purpose with the costing system, a standard job costing system was accepted in principle and implemented. The purpose of the investigation therefore is to conduct discussions on a standard costing system in general, the application thereof in factory A and an evaluation of the costing system by utilising correlation calculations and a discussion of the related aspects. By means of an introduction, attention was given to the specific and general terminology and definitions in chapter 1, whilst in chapter 2, a brief description was given of the term "Standard Costs", the principals thereof and the general advantages and aims of standard costing. With further reference to the aforementioned, the general principles and application of standard costs were briefly discussed in chapter 3. This entails a discussion of the various standards for each cost element, the way in which it is calculated, the determination of variances from standard production costs, the accounting procedure and the final completion by means of purposeful reports. The standard job costing system as applied in factory A, was discussed in detail in chapter 4. Special attention was given to the origin and the nature of the enterprise and the purpose of the standard job costing system. For further information, the planning, flow and composition of production was briefly mentioned. The accumulation of actual costs, the general utilisation and application of standards in factory A, the accounting procedure and the completion by means of reports were thoroughly discussed. The influence of an intended new costing system and the resulting changes, were also briefly mentioned in this chapter. For the purpose of determining the efficiency of the standard job costing system in practice, various correlations were calculated in chapter 5 and a comparative study and investigation of the related aspects were conducted. The influence of material costs on the total standard costs and the relationship between overhead costs and production costs were taken into account. Based on the aforegoing discussions, chapter 6 was utilised to draw conclusions and to make certain recommendations.