Page 290 - Microsoft Word - 00 ACCA F2 Prelims.docx

Chapter 15

9.2 Problems in using standard costing in modern environments

Standard costing may not be appropriate in the modern production environment
because:

 products are non-standard

 standard costs become outdated quickly

 production is highly automated

 ideal standard used in modern environments

 emphasis on continuous improvement

 detailed information is required

 variance analysis provides results ‘too late’.

284