Updating standard cost systems; making them better tools for today's manufacturing environment.
Journal of Accountancy › Vol. 170 Nbr. 6, December 1990
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Updating standard cost systems; making them better tools for today's manufacturing environment.
In recent years standard cost systems have been criticized by many theorists. Many of these systems measure variables no longer considered important. They need to be updated to measure variables tht are currently significant in manufacturing.
Traditional standard cost systems came out of the production-driven past, when favorable price and efficiency variances were achieved through large volumes of material and intensive labor. Just-in-time systems now have led manufacturers to recognize the dangers of overproduction and poor quality. Concentrating only on input can lead to p...See the full content of this document
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