9 – Standard costing
Publisher Summary 
This chapter discusses standard costing. A standard cost is defined as a predetermined calculation of how much costs should be under specified working conditions. The Terminology goes on to explain that a standard cost is built up from an assessment of the value of cost elements and correlates technical specifications and the quantification of materials, labor and other costs to the prices and/or wage rates expected to apply during this period in which the standard cost is expected to be used. The Terminology envisages that such standards would be used as established control tools through variance analysis, inventory valuation and even for fixing prices. Standards can be set for direct materials, both price and usage, for direct labor, and for indirect fixed or variable conversion expenses. Within the context of the operating of standard costing, the difference between the goal set and the results achieved can be quantified, analyzed, and hopefully, unambiguously communicated. At the very outset, the emphasis on analysis is vital because whereas the variance itself directs attention to its existence, it is the skill in analysis that correctly draws attention to the reason.
Behavioral Properties of Variance Controls
The behavioral implications of variance controls have generally been ignored. This paper examines the characteristics of variance controls, traces their use in modern organizations, and suggests further areas for application and improvement.
D'une application pratique des indices bio-météorologiques
Abstract The purpose of the author is to determine statistically in what part of Switzerland maize could be cultivated with certain chance of rentability. The author gives first the method he used for determining the biometeorological index of four species of maize which were selected by the Swiss agronomical research stations. He has considered two possibilities for the growing period: ( a ) raising-ripening (l'approche globale); ( b ) raising-flowering, flowering-ripening (l'approche fractionee). From the biometeorological index, he calculated retrospectively the ripening time of these four species in the years 1901–1965. Assuming a priori that maize should be harvested before October 15th at the latest, he calculated, for a number of meteorological stations, the relative number of years when such conditions were fulfilled. Dividing the country in regions of similar mesoclimates and sorting these stations per region, it is possible to average the maximum altitude where maize can ripen at least 7, 8, 9 and 10 times within 10 years. Finally, taking into account the exposure and ground slope, he draws maps of the theoretically possible extension area, which maps are more reliable and detailed than the ones derived from actual means.