A standard costing system enables management to analyse deviations of actual performance from budgets and forecasts, so that future costs can be more effectively controlled. A standard cost is thus a predetermined cost, which should be attainable against which actual costs are analysed. OLAP Office Explorer™, together with Microsoft’s Analysis Services (OLAP), can be used for creating a standard costing application to analyse the business reasons for variances. This can help in accomplishing company objectives, changing the current standards and keeping to required standards.
Specific variances that can be calculated include:
- Volume *
- Administrative, Selling and Distribution
- Variable Production Costs *
- Fixed Production Costs *
* For further breakdown of variances and the currency issues involved please contact OLAP Office, Inc..