The Use of Standard Costing as a Control Tool a New Era

Introduction Standard Costing became increasingly widespread at the beginning of the 20th speed of light as a system for determining the manufacturing unit hail of a product, by setting ideal rates and mandatory material quantities for assorted production processes (Hyer & Wemmerl?v, 2002). Drury (2008) state that merchandise fiscal ensample monetary values are derived by listing and adding the model terms of operations required to produce a finical product. The popularity of this increase increased significantly in the manufacturing industry, mainly beca utilize it could be using upd as a mechanism for managing damage, which could then be used to set product prices. Over the years, commonplace cost systems have become more than just cost sway tools by helping managers in other decision-making areas, much(prenominal) as public presentation evaluation and profit measurement. However, towards the end of the 20th century, standard be has been increasingl y criticised as an inadequate commission technique. Authors such as, Kaplan and Johnson (1987), Ferrara (1995) and Monden and downwind (1993) have argued that standard be is inconsistent in todays passing competitive and global descent environment. They maintain that standard be can produce certain types behaviour that could menace the selection of modern businesses.

Despite, the growing concerns regarding the application of standard costing in a rapidly changing economic environment, standard costing has remained a relatively common tool among business managers and is smooth regularly taught to students on conglomer ate accounting and management courses. Thi! s cover aims to critically analyse the use of standard costing as a control technique in a mod era. Firstly, standard costing get out be examined so as to understand its application in the business world. Secondly, arguments from various researchers bequeath be presented, which support and criticized the use the standard costing. Finally, these arguments will be weighed, so as to sick conclusions as to whether standard... If you fatality to get a full essay, rig it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper