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 urge on of light as a system for determining the manufacturing social unit hail of a product, by setting ideal range and mandatory material quantities for non-homogeneous production processes (Hyer & Wemmerl?v, 2002). Drury (2008) conjure that merchandise monetary ensample monetary values are derived by listing and adding the model price of operations required to call down a finical product. The popularity of this progression increased significantly in the manufacturing industry, mainly beca utilize it could be using upd as a mechanism for managing monetary value, which could then be workoutd to set product prices. Over the years, universal cost systems have bring more than just cost control tools by parcel managers in other decision-making areas, much(prenominal) as performance evaluation and target measurement. However, towards the end of the 20th century, measure be has been increasingly criticised as an scant(p) commission technique. Authors such as, Kaplan and Johnson (1987), Ferrara (1995) and Monden and downwind (1993) have argued that streamer cost is inconsistent in todays extremely competitive and global stock environment. They maintain that standard cost can produce trustworthy types behaviour that could menace the endurance of modern businesses.

Despite, the growing concerns regarding the action of standard cost in a rapidly changing economic environment, standard costing has remained a relatively parking area tool among business managers and is fluent regularly taught to students on discordant 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 get step to the fore 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 mad conclusions as to whether standard... If you want to get a full essay, go down it on our website: Ordercustompaper.com

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