9Dealing with Standard Costing: Simplifying Standard Setting
Introduction
Standard costing systems are deeply embedded in companies that use them, as illustrated in Figure 9.1. In most cases, standard costing systems are a component of a company’s Enterprise Resource Planning (ERP system), which is usually a significant investment for a company. The information produced by a standard costing system is used in management accounting to measure performance and analyze profitability. In financial accounting, standard costing values inventory for financial reporting. A standard costing system also goes a long way to defining the role of accounting and accountants in using and maintaining the system.
Figure 9.1Standard ...
Get The Lean CFO, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
