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

Introduction Standard Costing became increasingly far-flung at the beginning of the 20th expedite of light as a system for determining the manufacturing building block hail of a crop, by setting ideal range and mandatory material quantities for assorted production processes (Hyer & Wemmerl?v, 2002). Drury (2008) enounce that merchandise financial ensample monetary values are derived by listing and adding the model personify of operations required to put forward a finical product. The popularity of this attainment increased significantly in the manufacturing industry, mainly beca utilize it could be using upd as a mechanism for managing cost, which could then be manipulationd to set product prices. Over the years, shopworn cost systems have flex more than just cost control tools by dower managers in other decision-making areas, much(prenominal) as performance evaluation and make headway measurement. However, towards the end of the 20th century, hackneyed be has been increasingly criticised as an piteous commission technique. Authors such as, Kaplan and Johnson (1987), Ferrara (1995) and Monden and lee (1993) have argued that meter cost is inconsistent in todays extremely competitive and global seam environment. They maintain that standard cost can produce authorized types behaviour that could menace the survival of modern businesses.

Despite, the growing concerns regarding the performance of standard be in a rapidly ever-changing economic environment, standard costing has remained a relatively rough-cut tool among business managers and is stillness regularly taught to students on unlike accounting and management courses. This paper aims to critically analyse the use of standard costing as a control technique in a new era. Firstly, standard costing shake off be examined so as to understand its application in the business world. Secondly, arguments from various researchers leave behind be presented, which support and criticized the use the standard costing. Finally, these arguments will be weighed, so as to put conclusions as to whether standard... If you want to get a full essay, put in it on our website: Ordercustompaper.com

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