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Answer Posted / ravindra
standrd costis the cost which remains as standard cost
standard cost -actual cost = variance
1. actual quantity * actual rate -- 1
2. actual quntity * standard rate -- 2
3. standard quantity * standard rate -- 3
this is the formulaes for caluculating standard costing
like this we will keep some numeric values and see for eg
(4-1) the resulted figure is favourable or in favourable
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