standardikustannus

Standardikustannus, or standard cost, is a predetermined cost assigned to producing a unit of output or delivering a service. It represents how much a unit should cost under efficient operating conditions, based on expected input quantities and prices. The concept is used in management accounting to support planning, budgeting, and performance evaluation.

A standard cost typically consists of three elements: materials, labor, and overhead. Each element is derived from standard quantities (the expected amount of input per unit) and standard prices or rates (the expected cost per unit of input). For a product, the standard cost per unit is generally the sum of standard material cost, standard labor cost, and standard applied overhead.

Standard costs are used for budgeting, cost control, pricing decisions, and performance measurement. In practice, actual costs are compared to standard costs to produce variances. These variances reveal differences in price, usage, efficiency, and overhead application, and they are analyzed to identify causes such as waste, price changes, or productivity gaps.

Standards can take different forms. Ideal or optimal standards assume perfect efficiency, while normal or attainable standards allow for some normal waste and downtime. The choice influences how variances are interpreted and the tone of management action.

Advantages of standard costing include simplified cost control, clear benchmarks for performance, and support for inventory valuation and planning. Limitations include the risk of outdated standards, potential incentives that distort behavior if standards are too tight, and the need for regular review and cross-functional input to keep standards realistic.

Implementation typically involves a cross-functional standard-setting process, regular updates, integration with cost accounting and ERP systems, and ongoing variance reporting. The term standardikustannus is widely used in Finnish accounting literature and practice, aligning with global standard costing approaches.