Standard costing in modern environment, Managerial Accounting

Standard costing in modern environment

Standard costing has traditionally been associated with labor-intensive operations, but it can be applied to capital-intensive production too. With the shift to an ‘advanced manufacturing technology’ environment we have seen the following.

  • The introduction of robotics
  • The introduction of lithe manufacturing systems (FMS).
  • Computer aided design and computer aided manufacture (CADCAM) systems.
  • Job flexibility, with workers capable of being moved from one aspect of work to the other. Traditional one-man-one-machine manufacturing system does not apply.

 

It is quite possible that with manufacturing technology variable overheads are incurred in relation to machine time rather labor time, and standard costs should reflect this where appropriate.

With CADCAM systems, the planning of manufacturing requirements can be computerized, with the useful spin-off that standard costs can be constructed by computer, thus saving administrative time and expense while providing far more accurate standards.

Posted Date: 12/8/2012 2:46:36 AM | Location : United States







Related Discussions:- Standard costing in modern environment, Assignment Help, Ask Question on Standard costing in modern environment, Get Answer, Expert's Help, Standard costing in modern environment Discussions

Write discussion on Standard costing in modern environment
Your posts are moderated
Related Questions
Profitability ratios The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business re

King Manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows: Maintenance

Determine the Zero bases budgeting According to Leonard mere According to Leonard mere,  ZBB is a technique which complements and links the existing planning budgeting and revi

What is Sealed bid pricing Another from of competition oriented pricing is the sealed bid pricing. In a large number of projects, industrial marketing and marketing to the gove

Batch size of one Set up time is the amount of time needed to adjust tools and to retool for various product. Long set ups a change over time make the production of batches wit

Difference between a fixed and flexible budget Fixed budget A fixed budget remains the same irrespective of changed situations. It remains inflexible even if volume of

Period of operating cycle implies that total sum of number of days included in the various stages of operation commencing from the purchase of raw materials and ending along with c

One of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they mature. Separately from this the fi

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

EXTRA SHIFT DECISION These decisions are concerned with whether or not a company should work for 8 hrs, 16hrs, or 24 hrs a day or week days only or weekends also.  The factors