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
Selective Inventory Management The inventory of an industrial firm generally comprises thousands of items with diverse prices, usage and lead time, as well as procurement and/o

WHAT IS THE NPV OF ADOPTING THE LOCKBOX SYSTEM

Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu

COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision

What story or character in a story generated what Aristotle calls a "catharsis?" Describe your emotional response. What specifically caused your emotional response?

Explain Skimming pricing It is one of the most commonly discussed pricing method is the skimming pricing. This pricing method to the firm's desires to skim the market by sellin

Disadvantages of activity based costing 1) It is essentially not the panacea for all ills. 2) It absorbs a lot of resources. 3) Too much emphasis on customer viability c

Conduct a time series analysis base on the three years accounting ratios


Explain Functional classification a)  Liquidity ratio: these are the ratio which measures the short term solvency or financial position of a firm. These ratios are calculati