Standard Costing and Managerial Control

The video tutorial explains the concept of standard costs, which are predetermined costs for materials, labor, and overhead. It discusses how managers use their experience and historical data to set these costs, which are then used in process-based costing systems to compare against actual costs. The tutorial outlines the logical approach to setting cost standards, including establishing cost centers and classifying accounts. It also describes the three phases of cost standards: ideal, attainable, and basic, and how these are applied in managerial control for project analysis.

What are the three phases of setting standards for costs?

How does managerial control utilize standard costing in project management?