Bookkeeping

It represents the amount of product lost or wasted due to defects or inefficiency in the manufacturing process after it what is standard costing reaches the final production stage. The basic objective of standard costing is to measure the differences between standard costs and actual costs, and analysing them to maintain the productivity of the […]

A higher ratio typically indicates that the company is efficiently using its assets, while a lower ratio may suggest underutilization. This metric is especially useful for comparing companies within the same industry to evaluate operational performance. That said, a higher ratio typically indicates that the company is more efficient in using its assets to generate