Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 19

Discuss behavioral concerns in establishing and implementing a standard cost system.

Step 1 of 2

Direct cost & Sales variance & Control Systems

Sales variance is the breakdown of sales volume and which includes components like manufacturing cost (which is a direct cost), labour cost, material costs. Certain procedures are set in place, which help the organisation to control performance, which will include components from planning to evaluation. Similarly, operational & financial controls are also applied for cost control in their respective areas.