STANDARD COSTING Definition

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STANDARD COSTING is a control method involving the preparation of detailed cost and sales budgets. Such budgets are then compared with the actual results for a specific account period and any significant variances between the actual and the budgeted results are investigated. Unexpected trends are corrected if they are not acceptable or they cannot be accommodated.

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LAND, in terms of accounting, is the value of real estate less the value of improvements, e.g. buildings.

JOINT ACCOUNT is a financial account owned by two or more persons who share equally in the rights and liabilities of the account.

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