Standard Costing (Advanced Management and Accounting Series)

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9780122223556: Standard Costing (Advanced Management and Accounting Series)

Standard costing is the foundation upon which much management accounting and budgetary practice rests, yet it is often misunderstood. In this book Colin Drury sets out the nature and scope of standard costing whilst clearly identifying its limitations. The calculation and interpretation of the full range of cost accounting variances is covered, together with the formal analysis of the decision to investigate variances. The way in which standard costing information is recorded in the accounts is also dealt with in depth, as this step is essential to a full appreciation of the role of standard costing. Finally, the usefulness of traditional standard costing techniques in a modern production environment is assessed. The focus of this book is upon cost management. All costs are controllable by some manager at some point in time. An effective cost management system is one which clearly identifies such relationships and provides appropriate and timely reports. Standard costing is a vital technique in supporting effective cost management which needs to be understood not only by management accountants but also by managers themselves.

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