i) The standard costs must be estimated accurately and correctly.
ii) These must be revised from time to time.
iii) The costs must be based on expected standard costs.
iv) The variance between standard costs and actual costs must be analyzed and the tolerance limits must be also specified.
v) The main causes for variances beyond tolerance limits must be explained clearly.
Wilfykil answered the question on August 6, 2019 at 09:26
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