Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings

Homework answers / question archive / Need an research paper on standard costing methods

Need an research paper on standard costing methods


Need an research paper on standard costing methods. Needs to be 7 pages. Please no plagiarism. This point of view is well supported by both early (Solomons, 1952) and contemporary researches (Boyns and Edwards, 1997a). Needless to say, standard costing has come a long way before it became generally accepted.

Originally, cost accounting systems were mainly concerned with variable costs, such as labor and raw materials expenditures. This trend reflected the nature of businesses of that time, which had their variable costs dominating over fixed costs. It was found that before the First World War standard costing system largely interacted with organizational structure and strategic decision making (Boyns and Edwards, 1997b). Still, no evidence was found that the costing system had been used in eliminating wastes and inefficiencies. Moreover, costing practices at that time were limited only to basic industries, such as coal and iron.

Later, in 1900-1950 cost accounting at large, and standard costing in particular expanded further in the UK. Although still being under strict control at engineering (state policy prohibited profiteering in that sector), it developed into government departments and business generally. Standard costing was promoted with accountants connecting theory with practice and a considerable variation was found in the perception of standard costing between different times and places of that period in Britain (Boyns and Edwards, 1997c). Therefore the standard costing system was not still implemented widely throughout the industries in Britain. It began to grow in popularity as a rather simple and accurate way of improving the internal efficiency of a business. Nevertheless, issues of considering fixed assets, especially, depreciation created ambiguities for users of standard costing. These difficulties were strengthened with the trend of fixed costs (depreciation, maintenance, tooling, production control, purchasing, storage, etc.) increasing in value and variable costs decreasing.

Accounting historians indicate that the&nbsp.significant change in management accounting occurred only in the late 1950s. In fact, the term ‘management accounting’ itself began to enter the language of British accountancy, stressing the connection between these two fields of operations.&nbsp.

Purchase A New Answer

Custom new solution created by our subject matter experts