Scientific Application of Standard Costing Practices in Manufacturing Industries-A Case Study

Abstract

Standard Costing is one of the very traditional and yet an important tool in cost accounting. It plays a crucial role in controlling costs of an organization. The purpose of this study is to explore how standard costing could be effectively used in even small scale industries. With the emergence of modern scientific accounting systems, few experts have placed their opinion against the use of standard costing, marking it as obsolete and dysfunctional. But, the outcome of this study have shown that application of standard costing as modern management tools is still very much acceptable and in vogue. The lack of proper knowledge of standard costing is the only perceived hindrances in using and applying the same. Like any evolving field, this has to be applied scientifically to fetch the maximum benefit.