08-15-2006, 06:58 AM
Comparative cost information includes the cost information of previous years from which we can compare the cost info. of current year or it may also include the cost information of similar industry from which we can compare our company's performance.
Analytical cost information includes cost information from which we can analyse the cost components of our porducts or services. Comparative cost information can also be used as analytical cost information.
The difference is that analytical cost info. is a more wider term.
Standards are set by management.i.e. we will make ABC product in Rs. 10 in 1 labour hour. and then these standards are used as comparative cost information. in this way departmental performance can be measured and then controled.
ok the above given example was a departmental target of production department. we may add the quantity to be produced in one month say 350 units in a month. Similarly we may say that v have to sell 300 units i one month and that will be the target of marketing or sales department. and heads of those deptt are responsible for that
Analytical cost information includes cost information from which we can analyse the cost components of our porducts or services. Comparative cost information can also be used as analytical cost information.
The difference is that analytical cost info. is a more wider term.
Standards are set by management.i.e. we will make ABC product in Rs. 10 in 1 labour hour. and then these standards are used as comparative cost information. in this way departmental performance can be measured and then controled.
ok the above given example was a departmental target of production department. we may add the quantity to be produced in one month say 350 units in a month. Similarly we may say that v have to sell 300 units i one month and that will be the target of marketing or sales department. and heads of those deptt are responsible for that
