Many companies have discovered the importance of cost control as a means of survival in fiercely competitive markets in the early 2000. By implementing an organized, companywide process for controlling costs, a firm can reverse its sinking earnings trend and recover its market position.
Standard costs are established and revised each period during the budgeting process. Standard costs are continually reviewed and periodically revised if significant changes occur in production methods or in the prices paid for material, labor, and overhead. The level of production output plays an important role in determining cost standards. For instance, grossly underutilized production facilities often experience varying degrees of…show more content… = $103,200