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Standard Costing

Standard Costing

Standard Costing is a software program developed by Advanced Risk Management for cost calculations, controlling and planning. We are prepared to meet with the client in order to discuss the software’s configuration and the calculation method and methodology (e.g., selection of suitable allocation bases), with the aim of creating the most precise conditions for short- and long-term decision-making.

What is Standard Costing for?

The software serves as a controlling tool for providing information on the costs of individual product lines, goods or services (hereinafter referred to as “products”). It enables the user to plan future costs and revenues and to simulate changes resulting from changes in production volume. The software also enables comparison between planned (or simulated) and actual costs; output data can then be used for a further analysis.

Standard Costing capabilities

  • import data from accounting
  • define cost centers
  • define products for which costs will be calculated
  • define allocation tables on whose basis overhead costs will be allocated to the individual products, either percentage-based or using allocation bases
  • define allocation bases (e.g., production volume, processing time) that will be used to allocate overhead costs
  • plan future costs and revenues
  • simulate future costs and revenues resulting from planned production volume
  • use actual data, allocated data or simulated data to determine the share of the individual cost types (wages, materials, direct, indirect etc.) as a percentage of the total volume of costs
  • easily compare actual, simulated and planned costs
  • define users’ access rights

Advantages of using Standard Costing

  • easy to implement
  • local support enables continuous and trouble-free operations
  • fast and user-friendly output allows the user to focus on analyzing the output without having to compile the data
  • eliminates errors
  • allows for the creation and saving of multiple plans and simulations and their use at any time in the future
  • plans and simulations can be created using sliding dates, based on a planning period of the user’s choosing

Who is Standard Costing for?

The software is designed for financial managers and specialists responsible for controlling, planning and cost calculation.

Standard Costing presentation

Should you have any questions or would like more information, please do not hesitate to contact us to organize a demonstration of Standard Costing’s functionalities.