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Web of Proceedings - Francis Academic Press

Formation and Analysis of Labor Cost Variance Based on Standard Cost Method of Cost Management

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DOI: 10.25236/icbdem.2020.003


Zhiying Liu, Jinlong Wang

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Zhiying Liu


Standard cost method plays an important role in the system of product cost accounting, as a result the research on it includes the aspects of material cost, labor cost and indirect cost. However, there are more studies on material cost and indirect cost, and less on variance analysis of labor cost. With the popularization of machine manufacturing and the application of artificial intelligence, the labor cost has a new change with a downward trend, but it cannot be replaced in the short term and will still weigh in the manpower-intensive production enterprises. In this paper, firstly focuses were laid on the manpower-intensive production enterprises and non-customized production enterprises, and then efforts were made to further refine and decompose the labor variance on the basis of traditional labor variance analysis, and finally a more reasonable and practical analysis system was established, so as to provide data support for the standard cost variance analysis later.


Labor variance analysis system; standard cost method; indirect cost; labor cost