7. Standard or pre-established costs
In all the foregoing, we have dealt with actual costs, calculated on the basis of an analysis of the period's expenses recorded in the accounts.
However, the management system can also use standard, pre-established or forecast costs to speed up certain procedures, or to enable budgetary control.
7.1 Speeding up procedures
Let's take the example of raw materials consumption in the calculation of production costs. This consumption is valued at purchase cost, when the material is removed from stock. However, to determine this purchase cost, we have to wait until the end of the period to be able to process all the expenses. Consumption takes place during the period. If you want to account for the withdrawal immediately, it's best to keep...
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Standard or pre-established costs
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